International Journal of Research and Review

Vol.7; Issue: 12; December 2020

Website: www.ijrrjournal.com
Review Article E-ISSN: 2349-9788; P-ISSN: 2454-2237

Challenges Involved in Adapting and Implementing

an Enterprise Resource Planning (ERP) Systems
Chaitali Kotadia
Senior Finance Analyst, Finance Department, MSD (UK) Ltd. London, United Kingdom

ABSTRACT various devices as well as your laptop,

tablet, or mobile phone. The adaptability of
Enterprise Resource Planning (ERP) continues the ERP software programs is crucial
to be extensively accustomed to improving because it increases productivity and makes
productivity, boost the efficiency of economic information accessible wherever you are.
operations, and reduce business costs. ERP
Use ERP in your own home, at work,
implementation is extremely advantageous but
maintaining individuals’ benefits are extremely wherever, through our mobile-friendly
hard for most organisations at after solution and application Reworking a core
implementation phase. However, business method needs intensive
an unsuccessful implementation of Enterprise cooperation one of the peers and therefore
Resource Planning System (ERP) can for ERP adoption way in which involves
frequently curse financial disaster. The purpose multiple sections, require a confrontation of
of this information is to review on crucial reality, each exterior and internal[2]. Total
success factors (CSF) and risks (RF) of ERP price of possession that is crucial is measure
system implementation and supply a general success associated with a product mainly
clarification of complexities such based implementation; it will exclusively be
implementation. By analysing crucial success
measured if all the inner and exterior
factor and risks pointed out in literature, CSF
and RFs are mapped to project complexities variables are believed about correctly. [3].
concerned in almost any ERP implementation. You will find terribly restricted
This article shows that for a number of previous studies in work ERP inside
industries frequently challenges were centred on the project management software domain or
top management support, change management going through the integrated applying
techniques, effective communications, and ERP project management practices. The current
systems user training but missing internal project management software methodology
expertise, and conflicts along with other didn't give us techniques and tools for
priorities were even the critical factors which effective ERP implementations. Adopting
performed a huge role in ERP implementation. and applying acceptable project
managements concepts, tools, and methods
Keywords: complicated projects, ERP,
conceptual framework, critical success factors, to handle giant and complex application
managing services. project comes is among the important
management selections for managing any
I. INTRODUCTION enterprise application implementation and
ERP systems, also referred to as project managers are necessary to be
enterprise systems (ES), are some of the empowered to complete. The ERP
fundamental necessary business information implementation is not just an "IT project"
technologies that emerged over the past it's proper and really should be contacted
decade[1]. With Workwise ERP software, essentially. ERP systems are integrated
users get access to a centralized database applications which impact around the
everywhere you're employed and from complete organisation[4].

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Vol.7; Issue: 12; December 2020
Chaitali Kotadia. Challenges involved in adapting and implementing an enterprise resource planning (ERP)
systems.

A large amount of analysis continues 2.1 ERP RESEARCH AND

to be done throughout last decade in regard ASSESSMENT
to the success and failures of ERP Three distinct analysis courses area
[5]
implementations . Most of this are recognized for ERP connected research.
information originated from survey and The primary supplies a comprehensive
situation studies whilst not review of the ERP systems[8]. These articles
entering fundamentals on impact of project cowl such aspects as analysis agendas,
management software techniques and tools motivations and expectations and proposals
for ERP project. An idea of ERP in order to analyse the value of ERP
implementation approach should address the systems. [9].
integrity and use of a task management The 2nd courses concentrate on all
methodology, establish relationship the facts associated with ERP
with implementation partners and vendors implementations as well as their relative
and represent methods for authorization, success and cost. The articles in
fairness, and accountability through the this research embrace topics like
implementation existence cycle. implementation procedures, vital success
The outcomes of that relationship need to be factors, difficulties and complications in
the project manager is just control and ERP implementations and productive means
simultaneously, management methodology of effective ERP implementations. Esteves
is optimally established method and and Pastor (2001) [9] classify the
procedure to handle a task relating multiple publications connected using the
partners without direct classified reporting implementation part into four primary
structure. Three primary parts affects the topics: implementation approaches,
quantity of satisfaction of the ERP user: implementation success, alternative
"interaction using the IT department", "pre- implementation problems, and
implementation processes", and "ERP implementation situation studies.
[6]
product and adaptability" . In this research The third-courses concentrates on
article, I am inclined to conceive to the theoretical analysis mixers are designed
reconcile these various arguments, to hide aspects like use of modelling tools
following advanced organisation structure used in ERP contexts, start-up business
involved with any enterprise application modelling approaches and comparisons
implementations. between processes.
Frequently ERP implementations Critical success factors are very well
may need going against standard studied. There's the necessity to develop
understanding to be effective[7]. But no methods to place in apply and manage the
additional study continues to be completed vital success factors known in certain
to set up a substitute methodology to apply studies. [10].
ERP systems. This information will Most often documented risks for
concentrate on ERP project like a complex ERP implementations really are
adaptive system and each ERP projects are a) insufficient selection of application, b)
completely different and want project ineffective proper thinking and designing
governance and management in position to proper strategies, c) ineffective project
adjust to interconnection, communication management software techniques and
and management over completely different unhealthy managing control, d) insufficient
stakeholders committed any non- amendment in project management and e)
hierarchical relationship. insufficient coaching. All of a and
b activities area unit considered to be
project governance responsibilities[11], c
2. OVERVIEW might be a project management software
activity which might exclusively become

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Vol.7; Issue: 12; December 2020
Chaitali Kotadia. Challenges involved in adapting and implementing an enterprise resource planning (ERP)
systems.

successful if project leader empowers exploitation ERP have achieved savings

project managers correctly, and d and e area through the elimination of several and
unit project management software activity. sometimes incompatible inheritance systems
Other recognised management practices additionally as streamlining business
with relationships with implantation success processes[16].
are clearly defined it strategy, proper The prosperity of ERP comes is
alignment, and management commitments furthermore measured in what
[12]
. proportion financial, productivity gain the
ERP implementations support implementation produced for that ERP
multiple business areas and adoptive parent. Project management
introduce business method changes inside software methodology for ERP systems thus
the organisation. ERP implementations should use all stakeholders so overall price
are likely to enhance business process of implementation are frequently understood
consultants and answer suppliers across the organisation.
will exclusively provide the expertise how
you can understand base the way the ERP 2.3 ERP IMPLEMENTATION AS A
package works. Readiness land for COMPLICATED PROJECT
amendment was discovered to be elevated Applying ERP system are extremely
by 2 factors: structure commitment and difficult and complex, particularly in
perceived personal ability[13]. But product bigger organizations. Nobody that has
understanding concerning the ERP forward vision and understanding want
application is supplied by software system to volunteer for any project which requires
seller and consultants and could take part in lots of effort to complete an effect that
the governance method. nobody is pleased with. This article doesn't
aim to provide a definitive meaning of
2.2 ERP SYSTEMS AS CROSS- complicated ERP comes either. It aims to
ORGANISATION INTEGRATOR become inclusive rather of exclusive, to
Mankins and author (2005) [18] inspire conversation of all of the size quality
proven to make certain sensible since it pertains to ERP project in
performance inside a company, it is required accordance with CSF and RFs, also create a
to make use of a rigorous framework and situation for differing types qualities of
employ common business processes during complexities concerned in almost any ERP
any system implementation. ERP systems implementation and also the way better to
are software programs made of countless manage and govern such implementations.
modules, e.g., human sources, sales, The enterprises area unit
finance, and production, providing cross- compensated to create wealth, not to
organisation integration of understanding management prices and projects will be to
through entrenched business processes. make wealth inside the enterprise. This
Also, implementation should balance apparent the truth is not reflected in ancient
potential to deal with change and use of measurements [17]. Business models were
change management needed, will thought so that you can create choices and
exclusively be performed having a pluralist would potentially have the ability to run a
approach. Thus, ERP project management lot of the company. These designs
software should have general pluralist include drastically modified tasks associated
method of manage advanced. It comes down with managing a project. Consider ERP
like ERP implementations. touches many business areas, project
ERP systems give continuous managers area unit required to focus of
integration of economic operates creating wealth for that ERP parent and thus
by supplying them accessibility success of ERP implementation is measured
understanding they've[15]. Organisations

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Vol.7; Issue: 12; December 2020
Chaitali Kotadia. Challenges involved in adapting and implementing an enterprise resource planning (ERP)
systems.

by the wealth the ERP implementation reason add complexities. Thus, applying an
produced for that ERP parent. identical definition, ERP comes carries
There are numerous research using its multiple sub projects (small
discussing complicated projects within the business mapping, technical infrastructure
domain of project management software and development, modification management to a
shows four types of complexities concerned couple of) so they delay the effective
during a task. Sauer and Reich (2009) [19] modelling of complicated projects, whose
demonstrated which assume project conduct is around the far side the sum of the
managers to own mental feature and components and whose response to
emotive characteristics to re-think their alterations in inputs is difficult for that
apply and whether a substitute type of human mind to calculate.
individual is likely to be must be tomorrow's Following Baccarini (1996)'s
IT project manager. Sauer and Reich (2009) definition, project complexness is
[19]
with each other demonstrated that "consisting of the numerous varied
project managers should focus on reticulate parts". This operationalises when
concentrating on ultimate value, purchase of it comes to differentiation-the number of
trust, devolved, collective responsibility and assorted parts - and mutuality - the quality
temperament to constantly adapt. All of inter-relatedness between these parts[22].
individual characteristics not in favour of ERP can exclusively become successful if
the fundamental construct of project like a of those components work along. For a
brief term finish endeavour with specific detailed discussion on project
begin and finish. For of this research article, complexness, that's outlined victimization of
I am inclined to consider four types of parts concerned inside the project
complexities: structural, technical, and mutuality of parts, readers square
directional, and temporal complexities. measure observed, is going to be matched
with number of parts involved and mutuality
3. WHY ERP PROJECTS ARE in almost any ERP implementation[19].
COMPLICATED PROJECTS TO ERP project involves multiple
IMPLEMENT IN ORGANISATION? business and technical areas as symbolized
before and everybody areas won't follow
3.1 OVERVIEW same pattern of existence cycles inside the
You will find couple of research implementation. When it comes to ERP
articles focus on why applying ERP an project structural complexness,
obscure project. Skibniewski and Ghosh "differentiation" means monitoring number
(2009) [19] known sources are essential from of hierarchical levels, number of tasks that
coaching, application service supplier and square measure interconnected from
support for any effective implementation, totally different hierarchical level connected
Ifinedo and Nahar (2009) [20], known the effective control over these tasks in a cost-
significance of technology organisation for effective work break lower structure. The
any effective implementation. Lui and Chan most crucial challenge comes from project
(2008) known the significance of business organisation (composed of multiple parties
method reengineering[21]. e.g., ERP parent, ERP vendor, coaching
If we consider ERP implementation supplier etc, therefore forth pointed out as
like a system, it's complex because it actors from the ecosystem), scheduling,
comprised of a lot of parts that interact interdependencies, and contract
inside a non-simple way. The success of management. Structural complexities arise
ERP depends upon the way the product is because completely different sub-projects
integrated along with other applications concerned in almost any project may be in a
within the enterprise. The combination can distinct degree of project existence cycle at
frequently be undervalued and for that same purpose over time[23].

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Vol.7; Issue: 12; December 2020
Chaitali Kotadia. Challenges involved in adapting and implementing an enterprise resource planning (ERP)
systems.

Interdependencies would arise to coordinate management and technical risks, want

completely different actors concerned inside correct project governance in position and
the ERP implementation. empower project managers to complete.
The primary technical challenge Project committee and project managers
featured in almost any ERP system would must have information of applying
be that the merchandise existence cycle may complexness theory- structural, directional,
not complement adoption existence cycle. technical, and temporal processes,
When it comes to technological procedures, and policies and to put them
complexness, "differentiation" means the into action strictly in the initial stage from
amount and number of inputs, outputs, the project.
tasks, or specialties "interdependency" could Adopting a complexity theory
be the interdependencies between tasks, mindset affects practice in various and
teams, technologies, or inputs. frequently counter intuitive ways. Just like
Technical complexities arise once technical individuals in the market are empowered to
infrastructure required for ERP is non- create their very own purchases, in
compatible with existing setting of ERP compliance with complexity theory, project
parent (Hawking 2007) [24] and thus managers should be permitted to react in
mutuality with existing technical design. independent, self-organized ways to
When it comes to directional complexness, developments in individual single projects.
"differentiation "could be mean the The task of ERP implementation project like
unshared goals and goal methods, a complex project needs effective across all
unclear objective and hidden agendas boundaries - within ERP adopter, ERP
between completely different actors vendor, consultants, training along with
concerned in almost any ERP other support organizations. Streamlining a
implementation. ERP requires business governance and management structure that
method changes to guidelines as settled by satisfies all stakeholders, involves multiple
ERP vendor's supported business method organizations inside a with time period is
which cannot complement ERP adopters' really a struggle
business method. Modified business method Here are the ten most frequently
may not profit all sections or locations documented critical factors for ERP
equally[25]. Directional complexness implementations, detailing project
depends on management's objective in the management software and project
ERP success. When it comes to temporal governance challenges.
complexness, "differentiation" could be
characterised by shifting setting, and I. SUPPORT FROM THE HIGHER
proper directions that square measure MANAGEMENT
outdoors the treating of the work team, e.g., Higher management support is must
ERP vender dynamic technology platform throughout the implementation. The work
from the project that will need affiliate up- must receive approval from top
grade from the setting utilized by ERP management and align with proper business
adopters. goals. Top management must openly and
clearly find out the project like a main
3.2 ASSESSMENT OF CRITICAL AND concern[26]. Senior management must
RISK FACTORS commit their very own participation and
ERP comes usually comes at the readiness to allocate valuable sources
expense of schedule delays, and towards the implementation effort.
sharp project terminations because of poor Managers should draw new
selection of package and insufficient objectives and goals for employee. They
management support. ERP projects involve should check and get detailed updated
business method changes, modification progress report time to time. The function

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Vol.7; Issue: 12; December 2020
Chaitali Kotadia. Challenges involved in adapting and implementing an enterprise resource planning (ERP)
systems.

from the new system and structures ought to IV. PROJECT MANAGEMENT
be conveyed to employees. New Good project management software
organisational structures, roles and is really a way to succeed. Every individual
responsibilities ought to be established and or team should get responsibility they are
approved. New policies ought to be set by driving success in project management
top management to determine new systems software. First, scope ought to be
within the organization. In occasions of established and controlled [27]. The scope
conflict, managers should mediate between should be well-defined and become
parties and resolve the problem quickest restricted. Including the quantity of the
and fairest possible way. systems implemented, participation of every
team, and quantity of business process
II. ORGANISATION PLAN AND entertainment needed. Any suggested
VISION changes ought to be evaluated against
An obvious business design and business benefits and, so far as possible,
guideline to manoeuvre forward the work is implemented in a later phase [26].
needed during the entire ERP existence The critical pathways from the
cycle. A company plan that summaries project ought to be determined, and also the
suggested proper and tangible benefits, timeliness of project and also the timely
sources, costs, risks, and timeline is decisions ought to be managed. Deadlines
essential. There ought to be a transparent should be achieved to assist remain in the
business model showing the way the schedule and budget should be maintain.
business should operate behind the Project management software ought
implementation effort. Project mission to be maintained with synchronised training
ought to be associated with business and active Hr department participation.
needs and may be obviously mentioned. Also, there must be planning of well-
Goals and benefits ought to be identified defined tasks and accurate estimation of
and tracked throughout the implementation needed effort. Getting early measures of
process. The strategic business plan will success is essential [26]. Rapid, successive,
make work simpler and effect on work[27]. and contained deliverables are critical.
Continues budget monitoring, maintained
III. EFFECTIVE AND CLEAR the scheduled deadlines and target would be
COMMUNICATION the key factors.
Effective and obvious
communication is crucial to ERP V. PROJECT LEADER
implementation. At every stage, important Someone ought to be put into charge
and key information must be conveyed. The and also the project leader should a master
handling of communication, education from the project through the organisation.
and expectations are important within the There must be a professional champion who
entire organisation. User input should be has the ability to create goals and authorise
managed while gathering their needs, change. The company leader ought to be in
comments, reactions, and approval. control so there is a company perspective.
Communication includes the formal The best choice must constantly put efforts
promotion of project teams and also to resolve the variations and manage
the advertisement of project progress to all resistance.
of those other organisation[28]. Middle
managers have to communicate its VI. APPROPRIATE BUSINESS AND
importance and employees ought to be told LEGACY SYSTEMS
ahead of time concerning the scope, A reliable and efficient business
objectives, activities, and updates, and setting is important. Appropriate business
inform the modification will occur. and legacy systems are essential within the

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Chaitali Kotadia. Challenges involved in adapting and implementing an enterprise resource planning (ERP)
systems.

initial chartering phase from the project. VIII. LIMITED PROCESS

Business infrastructure involving current REENGINEERING AND MINIMUM
business processes, organisation structure CUSTOMISATION
and culture, affect success. It determines the It's expected that business processes
IT and organisational change needed for are formed to suit the brand-new
achievement [28]. system. Arranging the company tactic to the
program implementation is
VII. TRANSFORMATION crucial. Enterprise ought to be keen to alter
MANAGEMENT PROGRAM AND the company to suit the program
CULTURE with minimal customization and really
Through the project existence cycle should be recognized without modifying it
the alteration in management is incredibly so far as possible
critical. A culture discussing exactly the Broad reengineering should
same values and customary goal is useful to commence before selecting a system.
success. Business must have a strong In addition to configuration, a lot of
corporate uniqueness and should be open reengineering must take place iteratively to
change. A force on quality, a strong consider advantage of enhancements in the
computing ability, along with a robust new system. When deciding on the package,
readiness to simply accept new technology vendor support and the amount of previous
would help with implementation efforts. implementers should be thought about. [29]
Management should actually have a robust
dedication to make use of the system IX. SOFTWARE DEVELOPMENT,
for achieving business aims [29]. Users TESTING AND TROUBLESHOOTING
should be trained, and concerns should be Software development, testing and
addressed through regular communication, troubleshooting is vital, beginning inside the
dealing with change agents, leveraging project phase. The overall ERP architecture
corporate culture, and identifying job aids ought to be established before deployment,
for a number of users [27]. with the foremost important needs from the
The users should engage in design implementation. This prevents from
and implementation of economic processes reconfiguration at each stage of project
and also the ERP system, and formal implementation.
training and education ought to be provided There is definitely an option to make
to assist them to achieve this. Education on the quantity of functionality and method
ought to be important from the beginning of link the machine to legacy systems. Also,
of the work, and time and money ought to to best meet business needs, companies may
be allocated to several types of integrate other specialized software products
education and training [29]. using the ERP suite. Interfaces for
Training and professional growth commercial computer programs or legacy
and development of the IT personnel is systems may need to be coded in-house if
crucial. Their training ought to be they are unavailable inside the market.
emphasized, with substantial purchase of The organisation applying ERP
training and reskilling of developers in should fully trust vendors and consultants to
software design and methodology. solve software problems. Quick response,
Employees need training to determine the persistence, perseverance, problem-solving,
way the system can change business and firefighting abilities are essential.
processes. There ought to be further training Energetic and complex software testing
and native support for workers in addition to eases implementation.
managers during implementation.

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X. MONITORING AND ASSESSMENT Support of top management is

OF PERFORMANCE essential for achieving effective
Finally, monitoring and assessment ERP implementation. It is simple for senior
enter into action in the shakedown phase. managers to become sponsor but very
Milestones and goals are essential to keep tough to allow go the important team
an eye on progress. Accomplishments ought member for pilot testing or superuser
to be measured against project goals. Project training. The insufficient top management
management software-based criteria should support to provide time from the desk
be employed to quantity against completion because they are too anxious to overlook
dates, costs, and quality. Then operational sales, delivery to customer is among the
criteria should be employed to quantity from most typical ERP implementation risk.
the production system. Monitoring and
feedback range from the exchange of III. INADEQUATE TRAINING AND
knowledge between your project RESKILLING OF ERP USERS
team people and analysis of user feedback Accessibility to training might be
[28]
. unmanageable of ERP adopter and
Management needs bear in mind could add project complexities to schedule
around the aftereffect of ERP on business individuals’ tasks within the project
performance. Reports or approaches for plan. There should be enough training in
assessing data have to be designed. These new ERP system so accounting team and
reports ought to be created according to other operation team knows how to use the
established metrics. It has to include system and get best out of it.
effective measurable project goals that meet
small business and therefore are IV. LACK OF FACILITY TO RECRUIT
reasonable. Furthermore, performance ought AND HOLD QUALIFIED TALENT
to be associated with compensation. Most of the organizations thought it
Apart of the above-mentioned CSFs was difficult to recruit and retain good ERP
in applying the ERP system, there's experts due to their costly pay rates. The
also various risks to be reviewed from developers of greatest market share ERP
project complexities perspective. Listed vendors are very popular and moves in
below are some ERP risks that need one consultancy project to a different. So
considering before applying the ERP. not finding an in-house ERP specialist
could be significant ERP implementation
I. FAIL TO RESTRUCTURE BUSINESS risk. Also give him proper training and
PROCESSES TO FIT THE available online resources so that ERP
SOFTWARE: specialist gain more knowledge and share
There's a powerful craving the new with other team members.
ERP product is appropriate towards
the current process. However, this is hardly V. INEFFECTIVE STRATEGIC
the situation. It's very difficult in THINKING AND PLANNING
many businesses to change the present STRATEGIC
processes and also to personalize the ERP ERP user should recognize all the
system to suit to current processes is really a complexities as these complexities take part
pricey and time-consuming project. In my in various CSFs. ERP user should think
opinion this really is the greatest ERP about all of the factors involved with ERP
implementation risk. implementation ecosystem and be sure
proper governing and management process
II. LACK OF TOP MANAGEMENT is within place involving each factor
SUPPORT involved.

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VI. INEFFECTIVE PROJECT project. A theoretical framework for

MANAGEMENT distinctive and classifying management
Applying ERP is definitely an method following important success factors
enormous project and last anything between were created also it forms the thought
18 and 24 several weeks or even more. of comprehending the spectrum of ERP
Ineffective project management software in implementations. It shows however near
almost any clients is significant ERP to real-time governance and management
implementation risk. The level of chance of might be incorporated inside the
project cost and time overrun because of the project management and governance
lack of a measurement system for evaluating method and create a system to capture and
and monitoring project risk rest on project analyse issues. A substitute body of
size, skill using the new technology and knowledge connected with governance
project structure. connected control over complicated ERP
The above-mentioned CSFs and RF implementations needs to be designed to
clearly justify that the documented CSFs make sure greater coordination between
and RFs will exclusively be observed from many actors concerned within an ERP
the fancy project perspective and improve implementation.
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