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Challenges and issues during implementation of ERP
The organization confronts a variety of challenges during the implementation of enterprise resource planning. There are a variety of factors that influence the efficiency of ERP systems. The identification of these issues is crucial for the smooth commencement of implementation. Organizations can accelerate the efficiency of the implementation of ERP by formulating suitable mitigation plans for the identified issues. There are four key domains in which the organizations can experience challenges in the implementation of ERP (Babaei, et al., 2015).
Challenges in ERP technology selection
The decision for the selection of technology for the implementation of enterprise resource planning is crucial for the competitive position of the organization in the market. The technology selected for ERP should have high functionality, reliability, and compatibility with the existing systems of the organizations (Shatat, 2015). It should be cost-effective, user-friendly, and have the ability to minimize the time for implementation. The cost involved in technology selection is the key issue for the organizations. The organizations have to develop appropriate criteria for the technology selection that align with the budget organizations. The development of suitable selection criteria is a challenging task for organizations.
There is no universal model that can provide suitable technology selection criteria. Every organization has a different infrastructure and different demands that influence the selection criteria. The existing selection models are highly subjective and industry-oriented. These models do not account for various factors that are crucial for the modeling of selection criteria. These models employ a generalized approach that does not satisfy the needs of organizations. Organizations have to employ a multi-criteria approach to increase the efficiency of implementation (Nordin & Adegoke, 2015).
The software and hardware implementation of the ERP system demands different selection criteria and it is challenging to develop separate criteria for software and hardware implementation. The organizations have to identify different factors that should be incorporated into the criteria development. It becomes challenging for the organizations to employ a measurable approach for the development and evaluation of selection criteria (Kilic, et al., 2015). Moreover, there is no reliable quantitative technique that provides an effective evaluation of the selection criteria.
Change Management Challenges
The success of the implementation of ERP depends on the efficient handling of the change management process. The implementation of an ERP system demands changes in the organizational structure and strategy (Denolf, et al., 2015). For the positive outcomes of the implementation of ERP, every division of the organization should absorb the change. It is a challenge for the organization to integrate the ERP with the existing systems. The organization faces challenges to make suitable modifications to the existing system to make it compatible with the newly implemented ERP system. The organizations have to transform the organizational culture to incorporate the change. The organizations have to align each division with the change. The organizations have to conduct training, formulate new strategies and empower their human resource to adapt to the changes.
Organizations have to enhance their competencies for the effective handling of change management. Organizations have to employ tangible and intangible resources for effective change management (Seethamraju, 2015). The organizations have to transform the existing strategy to incorporate the change. The organizations have to overcome the resistance towards the change within the organization. Moreover, the implementation of the ERP system also influences the operational performance of the organization.
The competencies of top management influence the efficiency of the change management process. Organizations have to invest time and money to increase the competencies of their managers. The managers have to develop strong decision-making competencies for the effective incorporation of change. The organizations face issues in the development of mitigation plans for the change management process (Sun, et al., 2015). The organizations have to develop a comprehensive framework to plan, control and evaluate the change management process.
Challenges in Knowledge management
The success of the enterprise is based on its ability to harmonize the old and new systems, and also on the ability of the organization to manage the tacit knowledge. The implementation of an ERP system increases the ability of the organization to process the information for the effective management of resources. This system needs alignment with the existing knowledge management initiatives of the organization. The integration of the ERP system with the existing system is a challenging task for organizations. To increase the productivity of the ERP implementation, the organizations have to formulate suitable strategies to create, communicate and apply the knowledge.
The organizations face challenges in the management of technical knowledge during the implementation process. There are three main steps in knowledge management that demand efficient execution for maximizing the output (Asrar-ul-Haq & Anwar, 2016). The organizations face issues in the coordination of these steps during the implementation of the ERP system. The nature of knowledge management is processed-based which increases its complexity during the implementation. The organizations have to maintain the alignment of this process with the organizational objectives. Moreover, there are many challenges that arise in the alignment of the automated knowledge management system of the organization with the ERP system.
Emerging technologies challenges
Organizations have to incorporate new technologies to survive in the competitive environment. The survival of the organization depends on its capability to incorporate emerging technologies. Organizations have to respond to the advancement in technology to satisfy the customers and shareholders. The integration of emerging technologies with the ERP is a challenging task for organizations. The integration of modern technologies can increase the efficiency of ERP, improve transparency and increase the flexibility of the ERP system (Ranjan, et al., 2016). These technologies can increase the robustness of the system but the integration of these technologies demands planning and a suitable execution plan. These technologies play a complementary role to the ERP system and boost its efficiency. The organizations have to identify the modern technologies that are capable of enhancing the robustness of the ERP system and also fall within the selection criteria. The organizations confront challenges in the management of costs associated with the integration of complementary technologies.
Task 3: Industry expert talk
ONYX Pro Enterprise Resource Planning solutions is a company that provides a range of customized services for the management of different organizational activities. The company designs specialized soft-wares for its clients that integrate activities of different units of an organization to increase operational efficiency. The target market of this company is industrial and commercial organizations that seek efficient handling of resources and management of their day-to-day activities. ONYX Pro ERP solutions provide efficient ERP systems that are user-friendly and compatible with the infrastructure of industrial and commercial organizations. The company also provides customized solutions according to the requirements of its clients. ONYX Pro ERP solutions are one of the recognized company that provide effective solutions for resource planning.
The differentiated services of the company have increased its popularity in the middles east and Europe. The company is the preference of clients from twenty-two cities in the Middle East (ONYX Pro ERP, 2018). The company offers its services in four different languages and this capability of the company has become its strength. The company also provides free twenty hours of training to its users in the handling of the software. The company offers over forty different software packages for the management of different business activities.
The company has the capacity to advance its solutions according to the market demands. ONYX Pro ERP solutions upgrade its software packages to meet the demands of its customers. The company employs periodic customer feedback to address the concerns of its customers. The company aims to lead the market by introducing innovative solutions to the ever-changing organizational issues. The company manages a dynamic innovative process to provide cost-effective and efficient solutions to its clients.
The issues of organizations change with the changing market conditions. Organizations have to upgrade their systems to address the changing demands of the markets. Organizations have to seek cost-effective solutions for emerging issues and challenges. The aggressive market demands enhanced operational performance. The ERP systems can provide effective solutions for management issues. The ERP systems can efficiently manage the organizational resources and activities by the automated integration of different divisions of an organization. ONYX Pro ERP solutions have advanced the ERP system with its innovative and cost-effective designs that have the capability to entertain the changing problems of industrial and commercial organizations.
ONYX Pro ERP is a flexible software package that was developed using Oracle Database and it is a flexible software that has the capability to integrate with the existing organizational mechanism. There are forty-one different modules of this software that can be employed according to the requirement. It is a diverse ERP package that can address all the basic challenges of an organization. The smaller version of this software package is also available in the market that provides resource planning for smaller organizations at a low cost. Owing to the English, Arabic, French and Turkish languages of this package, it has been employed by more than 3000 businesses across the Middle East (ONYX Pro ERP, 2018). Contemporarily, the company has launched a mobile application that enables the customers to follow the business activities from smartphones. This innovative feature has increased the portability of the ERP system.
The company has launched Mutakamel Plus ERP for medium-sized enterprises (Ultimate Solutions, 2018). This specialized package provides accounting and human resource management services for medium-sized hotels, restaurants, and production factories. Almotakamel is another customized software package that contains advanced for the management of inventory, ledger, sales, and purchase operations for small enterprises (ONYX Pro ERP, 2018). All these packages help in the reduction of operational costs of small and medium enterprises and help in the sustainable growth and expansion of these organizations.
ONYX Pro ERP solutions also implement customized projects for large organizations both in the public and private sectors. The different modules of the ONYX Pro ERP system provide system configuration, accounts management, inventory management, human resource management, administrative reports systems, budget management, auditing, and industrial cost and quality management. These large number of managerial solutions in one package enable the customers to select and employ the module according to the demand of its activities. This package covers all management activities that meet the requirements of small, large, and medium-sized industrial and commercial organizations.
Task 4: Industry visit report
Introduction of company
Petroleum Development Oman is a petroleum company that deals with the supply of oil and gas in Oman. The company has been leading the oil and gas industry of the Sultanate of Oman for the past few decades. The company excels in the production and exploration of oil and gas, and about 70 percent of the country’s crude oil is produced by PDO. The company is the sole supplier of natural gas in the country. The Dutch Shell oil company holds a share of 34 percent and the government of Oman holds a share of 60 percent. This company is owned by the government of Oman and operates as the largest entity of hydrocarbons production in Oman.
The company employs SAP for carrying out the enterprise resource planning of its plants. The SAP is software that assists the companies in the efficient planning of resources. This software increases the efficiency and the productivity of the companies and reduces the operational cost by handling various operational activities. Petroleum Development Oman has employed SAP Plant Maintenance to increase the efficiency of its maintenance process. All giant and small companies employ periodic maintenance of their plants to increase the longevity of their plants. Maintenance is a long and comprehensive process, and the coordination of all activities carried out in the maintenance process is crucial for positive outcomes. SAP Plant Maintenance is helped PDO to manage the activities in the maintenance process.
The structure of SAP Plant Maintenance has three modules. The master data manages the task lists, cost records, bill of materials, and functional locations. Preventive maintenance deals with maintenance strategies and plants involved in the maintenance. Work order management deals with the planning, scheduling, notification, reporting, and execution of maintenance activities and strategies. There is a variety of SAP documents that are maintained during the maintenance process for the management of records. The notification documents generate a request for breakdown, record equipment history, and generate a request to initiate a route cause analysis. The corrective maintenance order is employed for unplanned jobs and function location is mandatory to generate these documents. The preventive maintenance order is automatically created and it is generated without any prior notification. The repair process order is generated for the repair of equipment damaged during the maintenance process. The refurbishment order is generated for the repair of stock materials. These different documents help to maintain the maintenance data for PDO.
Petroleum Development Oman has employed various modules of SAP for the planning and management of its resources. These modules control and manage different activities in a variety of departments. The financial accounting module of SAP manages treasury payments and assets increasing the robustness of accounting processes. PDO has improved it’s budget planning and reduced operational cost by employing the cost management module of SAP. Asset management is a complicated task for giant companies. Petroleum Development Oman has been using the asset management module of SAP for the maintenance of assets and for transferring the cost of the project to the asset.
Quality management is a complex task in the oil and gas industries. The management of quality costs heavily on the company’s budget. PDO has employed the quality management module of SAP for the inspection of material and for the documentation and certification of the material. PDO has achieved effective quality management with SAP and reduced the cost of the quality management process. The management of material demands coordination of various departments and robust material management is crucial for increasing the efficiency of the company. Petroleum Development Oman is the largest oil and gas company and it has to manage its material for robust operational performance.
The company has achieved efficient material requirement planning and purchasing automation by employing the material management module of SAP. PDO is effectively managing its inventory and stocks with the assistance of SAP. The company is managing its supply chain by making efficient receipt and supply of materials with help of SAP. The SAP is working efficiently for the resource planning for the Petroleum Development of Oman. The company probability of failure of SAP is very low and about 80 percent of the failure or downtime of SAP is owing to the people. Only 20 percent of the downtime of SAP is due to the failure of technology.
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