The use of technologies within organizations has led to creation of effectiveness and efficiencies in business operations and processes. In particular, the use of Enterprise Resource Planning (ERP) systems within the organization which offers business solutions by assimilating and incorporating business data in the articulation of business functions within the organization has created significant competitive advantages for businesses. The Enterprise Resource Planning platform offers integrated management support by facilitating extensive automation of internal and external customer interactions and relationships by sharing reliable information. The ERP system undergoes an elaborate lifecycle that occurs in stages of knowledge creation, analysis, classification, sharing and storage of information (Monk and Wagner, 2012). The success of the ERP system is an organization-wide project and concentrates accumulation of business intelligence that is useful in decision making. Moreover, it ensures the smooth flow of activities and customer handling services.
However, the successful implementation of this tool has been undermined by; lack of clear objectives which makes the adoption of the ERP system to lack purpose therefore leading to failure of the system. Two, lack of management support results in insufficient allocation of resources, poor leadership and resistance against the system. The third factor is insufficient training, since the ERP system is a complex software that must be administered with great knowhow and skill insufficient training fails to capture the efficiencies sought since employees are not in a position to effectively use the system. Another hindrance is the presence of a rigid organizational culture that is not accommodative of organization change, such a culture most likely prompts employees to sabotage the implementation and use of the ERP system through revolt or underuse. Moreover, inadequate knowledge management means that the organization fails to capitalize on the intelligence created by the ERP tool. In conclusion, for the effective execution of ERP system the organization must establish change management strategies as well as be in a position to lead the business reengineering process caused by these organizational changes in attaining organization goals.
Reference.
Monk, E., Wagner, B. (2012). Concepts in Enterprise Resource Planning. Course Technology Publishers. 4ed.
