Internship Report
Internship Report
Undertaken at
Certificate -
Acknowledgement -
Executive Summary -
Chapter I: Introduction -
Chapter V: Findings
References/ Bibliography
To Whom It May Concern
I DHRUV, Enrolment No. 01717788821 from BCOM(H)-V Sem of the Vivekananda Institute of
Professional Studies, Delhi hereby declare that the Summer Training Report (B.
Com 315) entitle “Challenges affecting the implementation of ERP software in IRCTC Operations”
is an original work and the same has not been submitted to any other Institute for the award of any
other degree. A presentation of the Summer Training Report was made on and the suggestions as
approved by the faculty were duly incorporated.
Date: Signature
DHRUV
certified that the Summer Training Report submitted in partial fulfillment of \Bachelor of Commerce
(Honors) BCOM (H) to be awarded by G.G.S.I.P. University, Delhi by DHRUV _, Enrolment
No.01717788821has been completed under my guidance and is Satisfactory.
Date: Signature
Dr. Noopur
Saxena
Asst. Professor V
CERTIFICATE
ACKNOLEDGEMENT
I express my sincere gratitude and thanks to Dr. Noopur Saxena for giving me an
opportunity to enhance my skill in my project. I am thankful for her guidance, patience,
and consummate support. I extend my heartiest thanks to her for enlightening my path.
Without her sincere advice, this project has been impossible.I would also like to thank the
various people who were involved with this project and gave me invaluable guidance in
this regard. Without their help, this project would not have been as comprehensive and
detailed as it is.
I also feel grateful and elated in expressing my indebtedness to all those who have directly
or indirectly helped me in accomplishing this project.
EXECUTIVE SUMMARY
Integrating data is an urgent issue for many firms due to challenges related to customer service or
competition. The growth of organizations is also impeded by poorly arranged information. In difficult
times, the need to adapt swiftly to market developments becomes essential for survival; chances to
secure new business should not be lost due to a lack of the appropriate methods and procedures.
Businesses cannot afford to have valuable staff members wasting time looking for important
information or battling outdated systems that are unable to maintain up with evolving business needs.
Every company division, including manufacturing, sales and marketing, finance, and HR, should have
easy access to the information needed for decision-making so that they are all aware of the exact course
of action that must be done. This suggests an organized IT infrastructure in which all operations across
all apps are seamlessly combined into a single database. This might be referred to as the ERP system
that a company requires to operate efficiently.
ERP is a type of business management software that a firm can use to collect, store, manage, and
interpret data from a variety of business activities. It typically consists of a suite of interconnected
applications. Using common databases managed by a database management system, ERP gives an
integrated view of basic company activities, frequently in real-time. Company resources such as cash,
raw materials, production capacity, and the status of company commitments like orders, purchase
orders, and payroll are monitored by ERP systems. Because it connects numerous organizational
systems and enables error-free transactions and production, organizations view the ERP system as a
crucial organizational tool.
The 1970s are when Enterprise Resources Planning (ERP) first appeared. Beginning with Material
Requirements Planning (MRP), a new computer-based method for businesses to plan and schedule
their inventory and material requirements that includes time-phased order points. To further describe
material requirements planning (MRP), manufacturing resource planning, and computer-integrated
manufacturing, the Gartner Group initially adopted the acronym ERP in 1990.ERP evolved to stand
for a larger whole that reflects the advancement of application integration outside of manufacturing
without displacing these words. Not all ERP programs started out with a manufacturing focus. Vendors
started in different ways, with maintenance, accounting, or human resources. By the middle of the
1990s, ERP systems covered all essential business operations. Government agencies and non-profit
groups have also started utilizing ERP systems.
IRCTC, the company where I interned, uses Oracle 11i e-business suite to satisfy their daily needs and
address the issue of data disintegration because ERP allows data to be merged into a single business
suite and information to be accessed from this location from anywhere at any time. Information in an
ERP system is updated by users in real-time and is available whenever someone needs it.
The following aspects are typically seen in enterprise resource planning (ERP) systems:
1) An integrated system that works continually without the need for updates.
2) A universal database capable of supporting all applications.
3) A consistent look and feel across all components
4) The system can be installed without the need for complex application/data integration from the
Information Technology (IT) department, as long as the deployment is not done in a series of fast steps.
IRCTC uses specialized ERP software (Oracle). ERP suppliers do provide customers with
configuration choices so that businesses can add their own business rules, however frequently feature
gaps remain even after configuration is finished.
ERP users have a variety of solutions, each with advantages and disadvantages, for bridging feature
gaps. Rewriting a portion of the provided software, adapting a homemade module to function within
the ERP system, or connecting with an external system are examples of technical solutions. The first
of these three solutions is the most invasive and expensive to maintain, while the other two represent
increasing degrees of system customization. As an alternative, non-technical approaches exist, such as
changing organizational or business procedures to better fit the supplied ERP feature set.
Oracle, a customized ERP system used by IRCTC, supports the company in four main areas.
i.e.-
▪ Payroll and Human Resource Management Systems (HRMS) - The Oracle Human Resource
Management Systems (HRMS) assists in developing a well-managed human resource system,
transforming HR management into a competitive advantage. HRMS is a means of changing the
people management position by utilizing Internet technologies in e-business.
▪ Accounts Receivable - The majority of your daily Accounts Receivable tasks can be completed
utilizing one of Oracle Receivables' three integrated workbenches.
▪ Accounts Payables is a feature that allows for payments to be made. Suppliers are described as
anyone who needs to be paid, including customers, internal employees, and external vendors.
Invoices and Purchase Orders or Receipts are matched by the Payables module in conjunction
with other modules, such as Purchasing.
▪ General Ledger: General Ledger is a complete financial management solution that improves
financial controls, data collecting, information access, and financial reporting across the
company. It also provides universal accounting data management. The General Ledger, which
receives transactions from sub-ledgers, is the main repository for accounting data.
Although the idea of ERP has been around for a while, even five years ago it was still too common to
associate ERP systems with expensive budget overruns and missed deadlines. Software was exclusive,
expensive to buy, monolithic, and needed extensive alterations to meet an organization's needs.
Integration toots were challenging to utilize, and the necessary expertise was only available from the
program manufacturer or a select few high-end consultants. Due to this, client costs were raised by a
factor of three to five times the price of the product. The gap between the ERP system's specification
and its go-live date was measured in months, and far too frequently, years, by which time the business's
demands had significantly altered from the original specification. Another impression is that a
traditional ERP system needs a small army of IT specialists to maintain it operational. To make matters
worse, the current economic climate requires that existing assets be fully utilized and that funds not be
made available for investments in infrastructure.
Rapid ERP implementation programs and techniques, however, have altered this dynamic. ERP
systems can provide enormous benefits to businesses without the accompanying costs and complexity.
The majority of ERP systems include best practices. This indicates that the software reflects how the
seller believes each business process should be carried out. The ease with which a client can change
these behaviors varies among systems. Companies who adopted best practices in the sector cut back
on time-consuming project chores like validation, documentation, testing, and training In addition, as
compared to other software implementations, best practices reduced risk by 71%.
Rather of 'waiting for the economy to improve,' organizations can respond to the need for integrated
information as well as the pressures of difficult economic times by implementing ERP.
With this project, I hope to demonstrate how the organization I work for uses ERP (Oracle). How they
use ERP to record daily transactions, what advantages it offers the seven organizations, and any
potential problems. However, its benefits ultimately outweigh all of its negatives.
Chapter 1
INTRODUCTION
Since 1990, the enterprise resource planning (ERP) systems emerged as helping organizations to
restructure organization of work using information communication technology (ICT) and be part of
organizational change that might be ICT driven or ICT mediated. ERP system is a set of integrated
software modules and a central database that may enable an organization to manage its resources
efficiently and effectively through reengineering and automation of business processes, data sharing
and access of updated information in real-time environment (Laudon and Laudon, 2015). ERP systems
may carry uniformity in the whole organization by bringing all the business process/routine tasks under
one umbrella. An ERP system supports a set of activities by application software encompassing
different modules, and consequently, helps organizations to accomplish and manage their business
processes efficiently and effectively (Huang and Palvia, 2001). Implementation of ERP systems is
supposed to enhance cross-functional operations within an enterprise (Ifinedo, 2006). Various reasons
for ERP implementation have been identified such as improving business performance, positioning
organizations for growth, reducing working capital and serving customers better (Panorama
Consulting Solutions, 2018, p. 11). The implementation of ERP systems in any organization may
reduce time, cost to carry out different work processes that consequently enhance the efficiency and
effectiveness of the organization (Subramoniam et al., 2009).
An ERP system is considered to be a cross-functional enterprise system that integrates and automates
organizational core business processes for achieving efficiency and effectiveness. The adoption of
ERP systems in public/private organizations is growing rapidly for the past decade. Different aspects
related to improving strategic decisionmaking, technological, operational, organizational and financial
performance have been mentioned that persuade adoption of ERP systems in organizations
(Gabryelczyk and Roztocki, 2017; Simone et al., 2018). The organizations that need to improve
business performance and sustain competitive advantages may change their strategy to go for ERP
systems rather than in house development of information systems. So, ERP systems have a wide
acceptability all-around the world among the organizations and the importance of such systems has
almost been realized (Wingreen et al., 2014).
The infrastructure of any information systems must be aligned with core business processes supposed
to be efficient and effective to deliver the product/services required optimally. ERP systems integrate
different business processes and have the potential to improve the efficiency and effectiveness of the
enterprise (Davenport, 1998; Somers and Nelson, 2004). Moreover, the integration of different
business processes may improve task efficiency when organizations emphasize on knowledge
integration with these business processes (Nwankpa, 2018).
Despite the ERPs’ contribution toward improved business integration and efficiency, lower operating
costs, facilitating the development of shared centres to process and improve administrative tasks:
The capacity of ERPs to deliver on their promise is open to serious question, however, not least on
account of the long line of implementation failures and wild cost blow-outs (Hall, 2002, p. 264).
Despite several potential benefits of ERP implementation (Maditinos et al., 2012), the literature also
reports a high failure rate of ERP implementation due to various reasons (Alsayat and Alenezi, 2018;
Simone et al., 2018).
ERP projects have a large number of failures than success stories. ERPs failures may be due to a variety
of reasons cited in past research (Hall, 2002; Chen, 2001). Only 13 per cent firms meet their business
expectations while more than 50 per cent firms showed unsatisfactory adoption toward ERP (Panorama
Consulting Group, 2009). Maditinos et al. (2012) mentioned ERP implementation failure rate on the
higher side because of ERP projects implementation high financial cost. Dezhar (2012) also found
ERP projects over budget by 178 per cent and achieved 30 per cent benefits so far. Later on, Garg and
Agarwal (2014) pointed out that 75 per cent ERP projects were either failure or not accepted. Panorama
Consulting Group (2017) analysis about 342 ERP projects led to findings that 66 per cent ERP projects
were late, 74 per cent projects were over-budgeted and 37 per cent projects received less than 50 per
cent benefits as expected. Various studies pointed out different factors that may affect ERP
implementation (Ghosh, 2012; Alsayat and Alenezi, 2018; Simone et al., 2018).
Reascos and Carvalho (2018) judged ERP implementation as a challenging one because organizations
focus on bringing change to an already established setting, reengineering, and refining work processes.
Risks associated with ERP implementation in organizations are high (Kazmi, 2018). Strategic planning
is of vital importance for successful ERP implementation. Such facts may lead to the conclusion that
ERP systems implementation is a challenging task, and its success still is questionable. The complex
nature of ERP implementation despite advanced ICT and ample research in this area still needs to be
understood for getting benefits expected. Some advocate that organizational approach seems to be
essential to adopt ERP systems and gain its potential benefits (Bingi et al., 1999; Markus and Tanis,
2000; Kumar et al., 2003). Past research also reflected the need for identification and understanding of
various issues and challenges of ERP implementation (Gupta et al., 2017). The objective of this study
is to be familiar with the potential challenges that management may face during the implementation of
ERP systems in the organizations. For this purpose, a systematic literature review (SLR) approach is
used to synthesize various issues and challenges already explored in past research findings digging out
the most critical ones, which require more consideration for the success of ERP implementation. The
outcomes would be fruitful for organizations planning to adopt ERP systems in their organizations in
the future.
After this introduction, the rest of the research paper has been organized into five sections. Section 2
presents the methodology selected for the current study. Section 3 presents the process for this review.
The data evaluation process is described in Section 4, and Section 5 represent findings, analysis and
discussion on top-ranked issues and challenges. Finally, Section n 6 presents the conclusion of current
research synthesis and future research directions.
Oracle ERP has completely changed how the IRCTC handles its supply chain management. The
system's supply chain module provides real-time information into inventory levels, supplier
performance, and order fulfilment for anything from sourcing ingredients for onboard food services to
buying equipment for train operations. Oracle ERP has assisted IRCTC in minimizing stock outs,
lowering procurement costs, and improving the overall effectiveness of its supply chain by
streamlining these procedures.
RATIONALE FOR CHOOSING THE TOPIC
1) Relevance to a Critical Sector: IRCTC is a vital part of India's transportation and hospitality
industry, managing ticketing, catering, and tourism services for millions of passengers. Understanding
the challenges in implementing ERP software in such a critical sector is of utmost importance.
2) Potential Impact: The successful implementation of ERP software can significantly improve
efficiency, customer service, and transparency in IRCTC operations. Conversely, challenges in this
implementation can lead to disruptions and affect the travel experience of millions.
3) Complexity of ERP Systems: ERP software is known for its complexity. Examining how these
complexities manifest in the context of a large-scale operation like IRCTC can provide valuable
insights into overcoming challenges in similar settings.
4) Data Management and Integration: IRCTC deals with vast amounts of data and multiple functions,
including ticketing, catering, and tourism. ERP software aims to streamline these operations, making
data management and integration a key focus area and a source of potential challenges.
5) Timeliness: Ensuring the timely and efficient implementation of ERP software in IRCTC is crucial
for maintaining smooth railway and tourism operations. Delays or issues can lead to passenger
inconveniences and financial losses.
6) Government Initiatives: The Indian government has been actively promoting digitalization and
efficiency in public services. Investigating the ERP implementation challenges in a government-owned
corporation like IRCTC aligns with broader policy goals.
7) Learning Opportunity: Analyzing the challenges faced by IRCTC can provide valuable lessons for
other organizations, both within and outside India, looking to implement ERP systems in complex
operational environments.
1) To study the performance of the company before and after the implementation of ERP system
2) Evaluate the existing ERP system in place at IRCTC to understand its strengths and weaknesses in
supporting operational processes.
3) Determine how ERP implementation challenges have affected the day-to-day operations of
IRCTC.
4) Benchmark IRCTC's ERP implementation against industry best practices to identify areas where
improvements can be made.
5) Provide recommendations for policy changes and strategic initiatives that IRCTC should consider
to overcome ERP implementation challenges and enhance operational efficiency
PROFILE OF THE ORGANISATION
Indian Railway Catering and Tourism Corporation Ltd. (IRCTC) is a Public Sector Enterprise under
Ministry of Railways. IRCTC was incorporated on 27thSeptember, 1999 as an extended an of the Indian
Railways to upgrade, professionalize and manage the catering and hospitality services at stations, on
trains and other locations and to promote domestic and international tourism through development of
budget hotels, special tour packages, information While discharging is mandate, the Company has
made a significant mark in its passenger-services oriented business lines like setting up of Food Plazas
on Railway premises, ‘Railneer’, Rail Tour Packages and Internet Ticketing bringing great deal of
professionalism into the operations. In addition to above, IRCTC is managing on Board Catering
Services in Rajdhani / Shatabdi / Duronto and Mail / Express trains and Static catering units such as
Refreshment rooms, AVMs, Book Stalls, Milk Stalls, ice Cream Stalls, Petha & Peda Stall etc. across
the Indian Railway Network.
❖ The revenues of IRCTC stood at Rs 36,619 m in FY23, which was up 87.2% compared to Rs
19,557 m reported in FY22.
IRCTC's revenue has grown from Rs 19,589 m in FY19 to Rs 36,619 m in FY23.
Over the past 5 years, the revenue of IRCTC has grown at a CAGR of 16.9%.
VISION: "To be the leading provider of high quality travel tourism and hospitality related
services, for a range of customer segments, with consistently high level of customer satisfaction."
MISSION: Enhance customer services and facilitation in railway catering. hospitality, travel
and tourism with best industry practices"
ORGANISATIONAL STRUCTURE:
Corporate Office of IRCTC is situated at New Delhi, which is headed by the Managing Director;
Managing Director is being assisted by three Directors, Director (Catering Services), Director
(Tourism & Marketing) and Director (Finance) and nine group general managers.
For smooth operations of the business across all over the country, five zonal Offices are working at
Delhi. Kolkata, Mumbai, Chennai & Secunderabad. South Zone Office is headed by Regional
Director and all other zonal Offices are headed by Group General Managers. All Group General
Managers have vast experience of working in Indian Railways. These zonal Offices are assisted by
ten Regional Offices at Lucknow, Chandigarh, Jaipur, Bhubaneswar, Guwahati, Patna, Bhopal,
Ahmadabad, Bangalore and Emakulam which are headed by Chief Regional Managers.
INDUSTRY PROFILE
The Indian Railway Catering and Tourism Corporation (IRCTC) is a pivotal entity within India's travel
and tourism industry. Established as an Indian public sector undertaking, IRCTC holds a prominent
role in providing a range of essential services, including ticketing, catering, and tourism. Its
significance stems from its integral position within the vast Indian Railways network, where it plays a
crucial role in serving millions of passengers daily.
One of IRCTC's primary functions is the facilitation of railway ticket bookings. Through its online
platform, passengers can conveniently book train tickets, check schedules, and manage reservations,
making it an indispensable service for travelers across India. This online ticketing system has not only
simplified the booking process but has also contributed to reducing long queues at railway stations.
Catering is another cornerstone of IRCTC's operations. It oversees catering services both on trains and
at railway stations, ensuring passengers have access to quality and hygienic food during their journeys.
The importance of this service cannot be overstated, as it significantly enhances the overall travel
experience, especially during long-distance train journeys.
Additionally, IRCTC has diversified its services into the realm of tourism. It offers a wide array of
tourism packages, including domestic and international tours, pilgrimage tours, and special tourist
trains. These packages cater to travelers seeking curated travel experiences and have expanded
IRCTC's reach beyond rail travel.
IRCTC operates under the purview of the Ministry of Railways in India and holds the status of a "Mini
Ratna (Category-I)" Central Public Sector Enterprise. Its government affiliation aligns with broader
policy goals related to digitalization and efficiency in public services, contributing to the government's
vision for improved passenger services and the promotion of tourism.
The Indian Railway Catering and Tourism Corporation is an integral part of India's travel and tourism
industry, offering services that are essential for the millions of passengers who rely on the Indian
Railways network. Its role in facilitating ticketing, providing catering services, and promoting tourism
aligns with the broader goals of enhancing public services and promoting tourism in India. IRCTC's
journey into the digital age further underscores its commitment to efficiency and innovation in serving
the needs of travelers across the country.
CHAPTER II
Literature review
2.1 Mashari and etal
The research yielded a model of 11 CSFs like ERP teamwork and composition, change management
program and culture, top management support, business plan and vision, and so on and classified them
into the respective phases (chartering, project, shakedown, onward and upward) in Markus and Tanis’
ERP life cycle and articulated their importance. Umble et al. (2003) identified success factors, software
selection steps and implementation procedures critical to a successful ERP implementation with a case
study. Al-Mashari etal. (2003) presented a novel taxonomy of the CSFs in ERP implementation
process based on a comprehensive analysis of ERP literature combining research studies and
organizational experiences to identify essential features of ERP systems based on business process
management. They found that ERP benefits are realized when a tight link is established between
implementation approach and business process performance measures. Bhatti (2005) presented the
study in which definition of new constructs associated with the ERP implementation and the
development of new multi-item measurement scales for measuring these constructs was done. The
scientifically developed and tested construct represented seven dimensions of CSFs of ERP
implementation projects. Motwani et al. (2005) in their research using a case study methodology
grounded in business process change theory identified factors that lead to the success or failure of ERP
projects. They suggested that a cautious, evolutionary, bureaucratic implementation process backed
with careful change management, network relationships and cultural readiness have a positive impact
on several ERP implementations. Guang-hui et al. (2006) in the research presented a model in which
they have divided the project of ERP implementation into four phases – programming, executing,
stabilizing, and ascending. They investigated the CSFs in ERP implementation. Nah and Delgado
(2006) identified seven categories of CSFs from the ERP literature like, business plan and vision,
change management, communication, ERP team composition, skills, and compensation, and so on.
They argued that the importance of these factors spread across three phases of ERP implementation
and upgrade like chartering phase, project phase and shakedown phase. Soja (2006) examined the ERP
implementation projects using a proposed success factors model defined based on literature review
and feedback from ERP adopters, and were grouped. This research employs its own proposal of the
synthetic measure of implementation success. The author proves that influence of factors on the ERP
projects success is specific to circumstances, thus giving insights into the ERP project outcome. Finney
and Corbett (2007) presented a comprehensive compilation and analysis of ERP success factors,
summarized CSFs, and proposed ERP implementation from a stakeholder perspective to uncover
deeper meaning of the strategic and tactical aspects of some of the more widely cited CSFs.
2.3) The impact of change management on ERP implementation success (Al-Mashari, 2015)
This research discusses the relationship between change management strategy and successful ERP
implementations. It includes a literature review of various theories on change management and ERP
implementation, as well as critical success factors for both. The study found that ERP critical success
factors fall under one of five main categories, namely: change management, project management,
change management techniques, integration of business process re-engineering, and technical
aspects. The document also provides information on the three phases of change management
strategy and potential challenges organizations may face when measuring the impact on users. The
research emphasizes the importance of change management in ERP implementation and highlights
the critical success factors that organizations should consider during the process. It also provides
insights into current practices in change management strategies and the theoretical approaches that
underpin them. The document cites various studies and sources to support its claims and
recommendations. Overall, the research serves as a helpful guide for organizations looking to
implement ERP systems successfully and manage change effectively.
Critical Success Factors (CSFs) have been introduced during the 1960s, as a concept that would
assist companies to achieve their goals and enhance their overall competitiveness. According to
Ram and Corkindale, CSFs constitute a systematic way of identifying key business areas that
require constant management attention. On the same vein, Rockart argues that the results
obtained in these critical areas, if satisfactory, are able to significantly enhance organizational
performance. In plain words, CSFs assist managers to directly affect a specific outcome, by
proactively taking necessary actions in certain areas Not surprisingly, the concept of CSFs gained
wide recognition in the Information Systems domain and, consequently, in the context of ERP
systems. Since high failure rates of ERP implementation projects have been observed by
numerous studies, many scientists have attempted to investigate the factors that may enhance
the whole implementation process. According to Ram, Corkindale and Wu, a large number of
CSFs have been identified throughout the international literature. Indeed, the literature review
analysis that was conducted revealed that the relevant literature includes numerous studies that
have, mostly, been published during the last 15 years. Among these studies, some are theoretical ,
some others are empirical, while just a few have adopted the case-study approach. According to
Saade and Nijher, despite the growth in the investigation of CSFs regarding ERP implementation,
there is a long way before the empirical contribution can be considered to be substantial. Moreover,
most of the empirical studies that have been conducted, incorporated a limited number of
critical factors in their analysis, failing to draw a more complete picture of the phenomenon.
Finally, despite the wide range of CSFs proposed in the literature, many organisations continue
to experience failures and difficulties in implementing ERP systems thus, calling for additional
research.More significantly, according to Ram and Corkindale, there is a lack of an established
process for the identification of CSFs. Various authors use subjective criteria in order to select
the critical factors utilised in their studies, something that results in a lack of objective
approaches. The present study heals that gap in the relevant literature, by developing a conceptual
framework that was crystallised after a coherent two-step approach (literature review analysis
and consultation with experienced practitioners / focus-group methodology).
The authors identified 108 relevant studies, which they analyzed to identify the key
challenges and factors that influence the success of ERP implementation projects.The
complexity of ERP systems poses challenges for organizations as it requires significant
changes in work practices, leading to resistance and implementation difficulties. Moreover,
many large enterprises lack the expertise to successfully implement ERP systems, relying on
expensive external consultants. Data quality issues, such as incomplete or inaccurate data,
further complicate the migration process and can cause problems post-implementation.
Budget and time constraints are also critical considerations, as ERP implementation is both
costly and time-consuming. Ensuring business process alignment is essential to maximize
the benefits of ERP systems. Additionally, effective change management is crucial to help
employees adapt to the new system and processes. Top management support is crucial for
the success of any ERP implementation project, especially in large enterprises where failure
can be costly. Effective project management is also essential, including creating a project
plan, monitoring progress, and managing risks. Communication is key throughout the
process, with a communication plan ensuring all stakeholders understand the project, its
changes, and benefits. Proper training is necessary for employees to use the new ERP
system effectively, with tailored training for different employee groups. Additionally, large
enterprises must have a post-implementation support plan in place, offering training,
resolving issues, and addressing user questions.
2.6) ERP implementation challenges in the public sector (Zahra Gholami 2020)
Enterprise resource planning (ERP) systems are integrated software applications that
automate and streamline business processes across an organization. ERP systems can be
complex and expensive to implement, but they can offer a number of benefits, such as
improved efficiency, reduced costs, and increased visibility into organizational operations.
The public sector presents a number of unique challenges for ERP implementation. Public
sector organizations are often characterized by complex bureaucratic structures, siloed
operations, and limited resources. In addition, public sector organizations often have to
comply with a variety of regulations, which can further complicate ERP implementation.
Other challenges in the public sector include resistance to change, complex business
processes, data quality issues, integration challenges, and lack of resources. Public sector
employees may resist change, so it's crucial to involve them in the ERP implementation
process and provide training and support. Complex business processes can be difficult to
map to an ERP system, requiring careful analysis and streamlining. Poor data quality poses
challenges, necessitating data cleaning and normalization. Integrating legacy systems with
the ERP system can be complex and costly, requiring thorough planning and testing. Limited
resources make it challenging to obtain expertise and support, requiring careful budgeting
and resource allocation. In addition to the challenges mentioned above, Irani (2008) also
highlighted some other obstacles that can hinder the successful implementation of ERP
systems in the public sector. One such challenge is the resistance to change, as employees
may be resistant to adopting new processes and technologies. This can be further
exacerbated by a lack of training and education on how to effectively use the ERP system.
Additionally, budget constraints and limited resources can pose significant challenges in
terms of funding and manpower for the implementation process. Despite these hurdles, with
proper planning, stakeholder involvement, and vendor support, the public sector can
overcome these challenges and achieve successful ERP implementation.
2.7) The role of project management in ERP implementation success (Patalinghug & Tan,
2007)
strong project management team in place to effectively plan, manage, and execute ERP
implementation projects. This includes developing a clear project plan, implementing effective
change management strategies, promoting communication and collaboration between
stakeholders, providing adequate user training, planning and executing data migration
effectively, and providing post-implementation support.
By focusing on these critical project management factors, organizations can increase their
chances of successfully implementing ERP systems and realizing the benefits they offer. It
is important for organizations to recognize the complexity and challenges associated with
ERP implementation projects and to invest in the necessary project management resources
and expertise.
Overall, project management is a key driver of ERP implementation success and should be
given the attention and importance it deserves in order to achieve successful outcomes.By
following these tips, organizations can greatly enhance their chances of successful ERP
implementation. A clear and comprehensive project plan lays the foundation for a smooth
implementation process. Defining project goals and objectives clearly ensures that everyone
is on the same page and working towards a common goal. Identifying and managing risks
effectively helps mitigate potential obstacles that may arise during implementation.
Implementing effective change management processes ensures that employees are
prepared for the transition and are willing to embrace the new system. Communication and
collaboration with stakeholders is crucial for gathering feedback and addressing concerns.
Providing proper training to employees on the new ERP system equips them with the
necessary skills to utilize it effectively. Developing a comprehensive data migration plan
ensures a seamless transfer of data from the old system to the new one. Lastly, providing
post-implementation support to employees ensures a smooth transition and helps address
any issues that may arise.