Erp System And Alignment Of Business Strategy

ABSTRACT

An Enterprise Resource Planning (ERP) System serves as a cross-functional enterprise backbone that integrates and automates many internal business processes and information systems within the manufacturing, logistics, distribution, accounting, finance, and human resource functions of a company.  Large companies throughout the world began installing ERP systems in the 1990s as a conceptual framework for reengineering their business processes1.  They have come to realize the importance of having such system in place to help them sustain their competitive advantage and to be ahead of other players in the market.  It is true that the benefits that comes with successful implementation are great but if not handled carefully, the risks involved are equally great.

The focus of this paper is to investigate the ERP functionality in an air-conditioner manufacturing company, ABC Sdn. Bhd., how the ERP system helps the company to align with its business strategy through the benefits achieved, how the company has succeeded in the implementation, highlighting the problems faced during and after implementation and recommendations on how these problems can be overcome.

LITERATURE REVIEW
Success Failure Dynamics of ERP implementation.  

William R. King, 2005 wrote in his article ?Ensuring ERP Implementation Success' that the 2 important measures that proved highly predictive of ERP implementation project success were the "arduousness of the consultant-client relationship" and the degree of the "shared understanding" i.e. the similarity in work values, norms and problem-solving approaches between consultant and client team members.

Problems faced with ERP implementation arise because the software purchased from vendors ar ...
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