ERP PROJECTS IN THE PUBLIC SERVICE DELAY OR FAIL BECAUSE OF POOR REQUIREMENT MANAGEMENT

ERP PROJECTS IN THE PUBLIC SERVICE DELAY OR FAIL BECAUSE OF POOR REQUIREMENT MANAGEMENT

Research Problem

Enterprise resource planning is a common term which is used by businesses. This process is used by companies to integrate different operations. ERP projects have no difference with other projects which are carried out within the organizations. Any project has an aim which is always to enhance the growth of the businesses. When it comes to ERP projects, they are carried out to make work easier because the employees can carry out different task under one system. Communication is vital for any organization because it is through communication that any information is made available, some problems are solved, and decisions are made. ERP collects information from different departments making it available to the entire organization where the discussions can be held. If there was a problem, it could be solved without any delay. The most interesting thing is the linking of information from different sections such as finance, production, human resource and distribution(Parthasarathy & Sharma, 2017). ERP has been changing with time. In the past, the traditional models which were using physical client servers were used by organizations, but in the current world, cloud-based software has been developed which offer web-based access.

Even though companies are making use of these projects, several issues keep rising from time to time. China is one of the most developed nations globally, which means that it is a step further in terms of technology as compared to other countries(Leyh,2016).There has been an increased concern over ERP project delay and failure for a long time in China. Some specialists have been arguing that the delay is caused by poor management within the organizations while others claim that the government policies have something to do with that problem. There is no enough evidence to support these arguments, and that is where there is a problem which needs to be solved. In other words, there is a gap to fill. Organizations need to be provided with answers as to why their projects are failing despite China being known as one of the superpowers. Another issue is that although most of the companies have employed IT, specialist, to deal with the ERP projects, some of the operations are not successful. Businesses are still performing poorly.

Bearing in mind that businesses need answers as to why the ERP projects are not being successful, this research will try to come up with those answers. To come up with the solutions, several questions will be addressed throughout the research..

What can organizations do to have successful ERP projects?

To answer this question, several possibilities will be considered, but the most important thing is that case studies done by other individuals will contribute to answering this question. There is a process which can be followed to enhance the success of this project. The first thing which can be done is to identify where the problem is. This is vital because before any project can be carried out, there must be a problem. In this case, the businesses must identify the problem before coming up with a solution. The second step is scope evaluation, where the problem must be evaluated. Evaluation means that the IT team must sit down and go through the problem while trying to come up with the best solution. The next step is data mitigation, where the organization has to select the data to be transferred(Parthasarathy & Sharma, 2017). Sometimes the companies are forced to use new software; thus, it is essential to identify the right data for transition. The other step is to check the infrastructure where the company need to be prepared for ERP implementation. There is change management where the employees have to be familiar with the new project in place and how it works. The employees do not easily accept some changes since they bring several changes to their daily routine.

What are the uses of ERP software

This question will be essential since it will enlighten the organizations on the importance of having ERP projects in place. One of the things to be considered is that it increases efficiency. Several tasks are carried out within the organizations such as marketing, accounting, inventory and production, which can be integrated using this platform. This means that at the end of it, it can be easier for businesses to collect and access data at any time. The ERP automates the day to day activities without having to stop some of the processes(Leyh, 2016). The second thing is collaboration. This is achieved by breaking the walls that exist between different departments. There is a superhighway which is created to link all the local stations, which implies that the employees must work in teams and not in a vacuum. The issue of security is well-taken care by this ERP solution since it has restriction controls against data bleaching. This means that no information can be accessed by unauthorised individuals because of a single data warehouse that limits the access points. Most importantly is that the operation costs are reduced, especially on the maintenance cost because the ERP software can handle troubleshooting when a technical problem occurs.

What causes ERP Project Delay/Failure

Before collecting the data, there are a few possibilities to be considered. This can help in the process of data collection and analysis. Some of the findings which are expected include poor timing. The most important aspect when implementing an ERP project is time because the project requires a significant amount of time for it to be effective. A single implementation is likely to go for around 14 months, even when using cloud platforms. One of the reasons to support the delay is failure to plan where most of the companies end up creating schedules that cannot be executed within a given time frame. Another reason is the infrastructure or a structural issue which cannot be fixed by planning. These are some of the answers that should be expected after data collection and analysis.

Literature Review

Application of ERP

There are several studies that have been done which are related to this topic. One of the cases to be considered is on the application of ERP within the organizations. The first application is by human resource management. When looking at most of the organizations, human resource managers oversee all the operations, especially that concerns the other employees. According to Grube & Wynn,      (2019) few human resources tools such as time tracker, job profiles, skills matrix, and the database for employees are incorporated with the ERP software to enhance efficiency. With this software, HR can integrate other modules such as the payrolls and performance review where the best employees can be paid a better wage. The other application is financial management. Finance is very crucial to any organization because no operation can be carried out without the flow of cash. The financial modules can manage the inflow and outflow of cash(Grube& Wynn, 2019). Most importantly is that it covers financial transactions such as the ledgers, bank reconciliation and balance sheets.Leyh, (2016) argues thatat a certain period depending on the management, it generates a financial report for different departments which shows how the money has been spent. This module also does tax management and payments for the workers.

When looking at the current world, there is a lot of competition in the industries. To have a competitive advantage in the business, most organizations make use of the sales and marketing departments. These departments ensure that the organization’s products can reach the public. According to Parthasarathy &Daneva, (2016) with the use of ERP, sales workflow such as the quotations, sales invoice and orders are well handled. In other words, the software makes the work easier for the marketing department. In the past, more time was used doing the calculations and reaching out to customers, but in the current world, things have changed where the software does all the work. Another interesting thing is about customer relationship management. This is a common strategy used by organizations to manage the interaction between employees and customers(Parthasarathy&Daneva, 2016). CRM has only one aim, which is to improve the relationship that businesses have with their clients. Having a good relationship means that the company can increase sales and profitability because the customers will be loyal. Having an ERP setup, CRM gets integrated with social media and sales module. This enables the organization to know more about their customers such as their history, social media activities and others.

Manufacturing is the process of production where goods are produced within the organization. A manufacturing department is always busy making new items to be sold. There is a module which has been used in the manufacturing to increase efficiency in sourcing, planning, forecasting and monitoring. When it comes to planning,Holsapple et al., (2019)argue that the model enables the manufacturing team to plan using the current trends. They make use of the model in calculating the fast-moving products so that to know the quantity needed for future production. With this model in place, the manufacturing department can monitor the market and come up with new designs that satisfy the customers. Another model is known as the SCM which manage the supply of a good in the market. Through this model, businesses have been able to achieve a competitive advantage. Supply chain activities involve production sourcing logistics and product development and most importantly, an information system. In other words, this module is responsible for the flow of products from production to consumption. Companies have been able to monitor the flow of their goods in the market and in case the customers return the goods, a good record is kept for future reference. The model can integrate the manufacturing department with the transport system so that the products can be transported to the respective customers or retailers.

Another model is known as the inventory. For the last few years, this model has been very effective for businesses, especially when it comes to serial numbers. An example this is very common in the supermarkets where all the products are given a serial number. It is easier to keep the product record using the serial numbers because all the data is stored within a computer. When buying products from the market, the cashier uses the serial number to determine the price instead of going around asking the cost of that product. This model has been integrated with the purchase module to enhance the movement of good from the stores to the customers. Sometimes the customers return the goods, and with the serial number, it becomes easier to trace where the product came from and the day which it was bought. The last module, which was considered is the purchase. Just like the name suggests, purchasing is the buying of goods and services. Purchasing model work like the inventory and SCM since it shows the transactions made through receipts, notes, purchase orders and stock updates.

Types of ERP

According to the research, there are several types of ERP which depends with business size, deployment and functions. The first one is known as generalised ERP. Just like the name suggests, research shows that this type is generalized, which means that it gets adapted to different processes. These solutions can be integrated in with various modules to perform the required tasks. A good example of this type is known as the NetSuite ERP(Holsapple et al., 2019). The other one is known as the open-source solution. This solution can increase usability since it is able to churn out highly customized processes. The other one is known as the vertical ERP, which is industry-specific, which means that it is only applicable to some processes within an organization. The solution is primarily meant for small companies such as supermarkets retails, distribution and construction because it focuses on a niche. According to Ranjan et al., (2016), a good example of this model is known as the Microsoft Dynamics AX. The other model is known as the small business ERP, which is only able to serve one or two processes. This means that it cannot be able to integrate systems fully. It works like PeopleSoft serve. The most common function is that it can perform accounting and HRM tasks.

Making ERP More Effective

Enterprise resource planning software tends to be under-utilized because of its complexity(Parthasarathy &Daneva, 2016). There are several things which are done to ensure ERP is effective. One of the things that can be done is to understand what ERP software are designed to do and why the companies use them. Most of the companies tend to argue that ERP is just a software product. However, Still, it is vital to note that it was designed to handle inventories, purchasing, finance, accounting, supply chain, and production scheduling, among others. It is essential to have the knowledge of what ERP was designed to do because it enables companies to know why they use it. The second thing is taking time to optimize ERP. ERP cannot be able to solve any problem without being linked to other business activities(Ranjan et al., 2016). According to Schneider, it might take time and money doing process reengineering, but the results are worth the payment. In other words, he meant that ERP needed to be married with other processes which might take more time, but in the end, the model can do a great job for the company.

Another thing is development of a continuous improvement strategy. Parthasarathy &Daneva, (2016) claim that for any software to be effective, it needs to be updated from time to time. This is the same case when it comes to the ERP because it requires continuous improvement. Reviews are vital since they ensure that the software are up to date. With this continuous improvement, the software can operate effectively without any drawbacks. These improvement strategies can be compared to product maintenance. When a product is bought from a shop, it needs to be maintained for durability and efficiency. An example, for a car, to serve for a more extended period, the owner doesn’t have to wait until the tires are worn out for it to be repaid, but he/she keeps going for services from time to time.Another thing to enhance effectiveness, according to Ranjan et al., (2016) is to use dashboards and reporting. ERP should be customized for users in different departments. This implies that the accounting department needs to use various tools from those used by the purchasing team. In other words, a similar system can be used but have personalized interfaces. This will ensure that data is delivered to the right recipients.

The last thing and the most vital is staff training. This can be done through learning programs which can be aligned with the user’s needs. For any new software within an organization, training is always the first thing which is done because the employees need to learn how to make use of such software. Various training methods can be used from time to time so that the staff can be up to date(Holsapple et al., 2019). Many organizations have failed in this because they assume that the employees know how to use the software. In return, they end up making mistakes that cost the organizations. Thus, training should be done from time to time to increase efficiency.

Methodology

When it comes to data collection, different methods need to be identified. In most cases, the two commonly used methods are quantitative and qualitative. Quantitative deals with quantity, while qualitative is more of quality(Poortaghi et al., 2019). In this topic, the best method which will be used will be qualitative. Below are some of the examples that will be used in this research. It is essential to remember that there are other sources of obtaining information about this topic that will be used, which are known as the secondary and primary sources. Qualitative methods will only be used in the field.

One-on-One Interview.

This is a personal interview that will be carried out with one respondent at a time. The interview can be carried out through the phone or face to face though; most researchers prefer a face to face interview. This is the best kind of interview because the person can gather precise data about his/her respondent. Most important is that there is an opportunity to read the body language of the respondent and know when he/she is lying.

Focused Groups

When looking at most of the organizations, they prefer to work in groups because it makes work easier and faster. 6-10 individuals can participate in the discussion. In most cases, this method is used in a complex process, just like this topic since it involves a complex situation. The best way to obtain information using this method is to visit the organizations that use ERP models and have group questions where a number of 6 individual per group will be required.

Case Study Research

This is one of the qualitative research design. Just like the name suggests, information is gathered from different sources then compiled to make a stronger conclusion. One essential feature of this method is that it allows the researcher to gather more information from articles and other written sources. This is the first source of information that is used when writing the literature review. It may look difficult, but it is the simplest and the best since it involves a deep and thorough understanding of the data collection techniques. The data which was collected by other researchers will be used in this case.

Record keeping

This method uses the existing information as data sources. It is used when research is done within a short period where there is no enough time to go and collect data from the fields. In the past, people used to go to the library and read books to gather information, but in the current world, things are done differently. The internet makes things faster and easy when doing research. Different articles and books will be read, and comparison will be made to come up with the best conclusion to question on this topic.

References

Parthasarathy, S., & Sharma, S. (2017). Impact of customization over software quality in ERP projects: an empirical study. Software Quality Journal, 25(2), 581-598.

Leyh, C. (2016). Critical success factors for ERP projects in small and medium-sized enterprises—the perspective of selected ERP system vendors. In Multidimensional views on enterprise information systems (pp. 7-22). Springer, Cham.

Grube, M., & Wynn, M. G. (2019). Management Guidelines for Better Application of Business Process Management in SAP ERP projects. International Journal on Advances in Systems and Measurements, 12(1&2), 125-134.

Ranjan, S., Jha, V. K., & Pal, P. (2016). Literature review on ERP implementation challenges. International Journal of Business Information Systems, 21(3), 388-402.

Holsapple, C., Sena, M., & Wagner, W. (2019). The perceived success of ERP systems for decision support. Information Technology and Management, 20(1), 1-7.

Poortaghi, S., Raiesifar, A., Bozorgzad, P., Raiesifar, Z., Teymuri, E., &Saraee, S. (2019). Reflexivity and Its Application in Qualitative Researches: A Narrative Review. Iranian Journal of Nursing Research, 13(5), 46-51.

Parthasarathy, S., &Daneva, M. (2016). An approach to estimation of degree of customization for ERP projects using prioritized requirements. Journal of systems and software, 117, 471-487.