Question 1.

What are the main challenges associated with implementing fully-fledged ERP, CRM, and
SCM systems?

Enterprise resource planning(ERP) is a cross-functional enterprise system driven by an integrated suite

of software modules that supports the basic internal business processes of a company. For example, ERP
software for a manufacturing company will typically process the data from and track the status of sales,
inventory, shipping, and invoicing, as well as forecast raw material and human resource requirements.

ERP Implementation Challenges

An ERP implementation involves people as well as technology.
Accordingly, it may face people-related challenges, such as resistance to
change, as well as technical obstacles. Common ERP implementation
challenges include:

1. Project management. ERP implementations entail multiple phases:

discovery and planning, design, development, data migration, testing,
deployment, support and post-launch updates. Each phase brings
critical tasks, and all elements need to stay on track, which requires
meticulous project management. Additionally, successful ERP
implementations require participation from all the groups that will be
involved in developing and using the system. That can be incredibly
challenging, because each department is juggling its ERP project
responsibilities with multiple other priorities.

Strong project and people management, which includes setting

realistic expectations, time frames and milestones, along with timely
two-way communication, is critical to success. As with change
management, backing from executives and other top leaders is
essential to conquering this challenge, as well.

2. Project planning: Organizations often underestimate the time and

budget necessary for a successful implementation.One of the most
 common causes of budget overruns is scope creep—when a
business adds capabilities or features to the system that weren’t part
of the original plan—and another is underestimating staffing
needs, according to Statista.

Developing a clear and realistic plan from the start can help to avoid

those issues. A realistic project plan that acknowledges possible
speed bumps and minor cost overruns and addresses them in
advance will simplify that decision-making process and keep the
project on track.

3. Data integration: One of the key advantages of ERP is that it

provides a single, accurate source of data for the whole organization.
A key step in ERP implementation is data migration, which typically
involves moving data from multiple older systems into the ERP
database. But first, you have to find all of your data. This may be
much more challenging than you expect. The information may be
spread far and wide across the organization, buried in accounting
systems, department-specific applications, spreadsheets and
perhaps on paper.

Well-planned data migration can help to keep the entire ERP

implementation project on time and on budget. It’s also an opportunity
to winnow out obsolete and redundant data lurking in the
organization’s older systems. In contrast, underprioritizing data
migration can cause issues such as inaccurate or duplicate data and
challenges to your go-live date.

4. Data quality: Once the organization has located all data sources, it

can start thinking about migrating it to the ERP system. But that may
involve a serious data hygiene exercise. Because multiple
departments interact with the same customers, products and orders,
organizations often have duplicate versions of the same information
in their systems. The information may be stored in different formats;
there may be inconsistencies, like in addresses or name spellings;
some information may be inaccurate; and it may include obsolete
 information such as customers or suppliers that have since gone out
of business.

Ensuring data quality can become a sizable project on its own,

involving validating the data, cleaning out duplicates and adding
missing values before migrating data to the ERP system. The new
data should also be thoroughly tested before going live with the ERP
system. Make sure your team understands the importance of
cleaning up data, and assign clear responsibilities in doing so. For
example, the accounting team will handle all financial data and the
customer service group will clean up customer data.

5. Change management. An ERP implementation involves more than

just switching to a new software system. It typically means
overhauling business processes to take advantage of the efficiency
and productivity improvements possible with the new solution. This
requires a shift in mindset and a change in everyday work processes
for many employees, which presents typical change management
challenges.

Resistance to change can be a formidable roadblock; getting buy-in

from leadership and stakeholders across departments very early in
the implementation process is crucial to a successful implementation.
Communicate the features and advantages of the new ERP to all
stakeholders throughout the implementation process, especially end
users on the front lines. And make sure all users receive
comprehensive training and support to help smooth their paths to
adoption of the system.

6. Cost overruns: ERP projects are infamous for sailing past budgets

after the implementation kicks off. Many organizations underestimate
the amount of work required to move to a new business system, and
that results in spending more money than expected.These cost
overruns often show up in a few different areas.
 When internal resources run low, businesses frequently use a
software vendor’s services team or third-party consultants more than
planned. This is especially true if the solution requires significant
customization to meet your company’s needs. Experienced ERP
consultants, whether provided by the vendor or part of a third-party
consultancy, usually run about $150-175 per hour, plus travel
expenses. Another budget breaker is data migration, which can
represent as much as 10-15% of the total project cost, according to
ERP Focus. Training costs are one other expense to consider—ERP
vendors often offer free basic training to customers, but you may
need to pay for additional training hours or classes during or after the
implementation.

To avoid blowing up the budget, companies should consider these

and other overlooked expenses, and budget more than they think for
them. Coming in under budget is always preferable to the alternative.

7. Continuous improvement: An ERP implementation is not a one-off

effort that ends when the new system goes live. The solution must
continue to evolve to support new business demands and technology.
The project team needs to continue to manage the project after
deployment, fixing issues and supporting new requirements as they
come up.

Once implemented, business often use ERP systems for more than a

decade, so it’s imperative to perform a periodic review to assess
whether the system is still meeting the organization’s needs.
Older on-premises systems can be harder to upgrade than
leading cloud-based systems, which automatically make new features
and innovations available to users. An outdated ERP system can
begin to hinder the business, so it’s worth periodically assessing
whether it’s better to stay with the current system or begin the
extensive project of finding a replacement.
What are the CRM Implementation Challenges?

1. Cost

One of the greatest challenges businesses face when implementing a CRM solution is cost. Yes, it
might turn out as a costly affair if done in haste and without a robust planning. Here, it is advisable to
decide as why your business needs a CRM. This should give out a clear picture about the type of
CRM system and implementation techniques required eventually helping to set a budget for the
same. So simply diving in imitating your competitor’s CRM strategies is a lot like shooting in the
dark that might lead to total disaster. So it is always a sound thing to discuss the total cost of
ownership, IT resources, hardware or software, etc. with all the shortlisted CRM providers.

2. Set Clear Objectives

Defining clear objectives that a business intends to achieve with the system is one of the secrets for a
smooth and successful CRM implementation. Further, it is advisable to work towards making these
objectives as measurable metrics. Failing to do so might make it difficult to evaluate the ROI or core
benefits of the system. Next, it’s time to reckon on the functionalities you expect from the system.
For this, ask yourself: do you intend to have it for sales, marketing, customer service or all of them?
What problems you aim to address with the system? Having a clear idea about the objectives and key
functionalities required in the system is a crucial step towards seamless CRM implementation.

3. Deployment Type

This is all about on-premise vs. cloud! A perfect escape plan here is to compare the set budget vs. the
total cost of ownership that should include cost for all the resources required, maintenance, upgrades,
infrastructure, etc. before making up your mind of whether to go for on-premise or cloud. This
further boils down to business preferences, type of industry the business operates in, etc. Form a
dedicated CRM team within the organization including people from top management, IT department,
senior executives, customer support and end-users to discuss about their daily struggles, reasons
leading to inefficiencies in their work, suggestions to boost productivity, etc. This should give a good
picture about the type of deployment type best suited for your business.

4. Training

Another widely encountered challenge during CRM implementation is the company-wide training it
summons up. This calls for involving all the potential users right from the early stages itself. In fact,
if possible it is good to involve all the would-be users of the system right from the decision-making
process. Pick key personnel from each department, who can be trained extensively. Eureka is these
personnel turning evangelists of the newly rolled-out CRM system, which helps significantly to
educate their fellow team members.
5. Plan out Integration Needs in Advance

Integrating CRM system with other business management solutions such as ERP, payroll, etc. tops
the ‘wish list’ for most of the businesses opting for CRM solution. Nonetheless, it is advisable to plan
integration needs if any well beforehand to avoid CRM implementation overkill and information
overload to your employees. A smart thing here is to plan a phase 2 for integration needs post
company-wide adoption of the CRM system.

6. Hire the Right CRM Solution Provider

Roping in the right CRM solution provider or partner is the crux for successful implementation.
Preferably, go with a partner that helps in both implementation as well as pre-implementation
strategy. Moreover, it is imperative that your partner puts down all the implementation risks on the
table well before you sign on the dotted line.

RM Implementation is an important and a crucial step in the CRM buying process. It is a make or a
break situation where it can totally go kaput or be seamless. It is in this stage too that all the data is
migrated to the new platform and since the data is of a crucial nature, utmost care needs to be taken
during the migration.

To have a successful implementation we must plan in advance as how our implementation can be
smooth and successful. For most it may be the first time that CRM is being implemented in their
premise, hence, we have compiled some actions that can be taken to get rid of any blunder to happen.
Let’s see the same one by one.
Question 2. In managing information technology resources what are the main challenges facing IT
managers and what are the success factors that managers should embrace to meet the organizational
goals?

IT main challenges

 Effective Communication With Employees

 Pressure To Perform as a Manager
 Administer policies fairly and consistently
 Managing Time
 Manage Performance
 Setting Clear Goals And Expectations
 Getting the team to be productive
 Encouraging Productivity
 Hiring and Firing Employee
 Not Asking For Help

success factors that managers should embrace to meet the organizational goals

 Technology will be useful only when it is used.

 More emphasis needs to be placed on adoption, adaptation, and exploitation of technology
 Protecting existing technology rather than promptly embracing new technology becomes a
“dead end” strategy (Ali & Zahra 1994). E.g., IBM vs. HP.
 Customer involvement leads to success.
 Managers today must understand
 ❑ Impact of IT on the strategic and organizational changes
 ❑ New role of IT in integrating different business functions in systems design