Literature review Essay Example | Topics and Well Written Essays - 2000 words - 1

Literature review - Essay Example This is where ERP (Enterprise Resource Planning) comes into the picture. ERP in the form of software applications will integrate all the departments and thereby will integrate the internal and the external management information across the organization. By integrating the information and then making it available to the needed departments, ERP will optimize the various organizational processes. With ERP producing optimal benefits, it is being implemented in organizations in various sectors. However, the implementation process will not be a smooth flowing affair, as various risk factors could impede it. When ERP is implemented, apt change management practice has to be initiated. However, various risk factors could arise during this change management process, thus turning out be a major impediment for ERP implementation. In addition, when the employees are trained and equipped to handle ERP, another set of risk factors will arise. Then, there could risk factors related to the software c ustomization according to the organizational processes. ... Singla and Goyal (2006) adds to this perspective by stating, how ERP can upgrade an organization’s ability to generate timely, relevant and accurate information needed for the various organizational processes throughout the enterprise and its supply chain. ERP made its appearance in the 1990’s, when Information Technology (IT) and its applications made its presence in various spheres of human life, particularly in business organizations. It was also during that period, many firms around the world started shifting their IT strategy from â€Å"developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems.† (Hong and Kim 2002). Sumner (2000) adds additional perspective by stating how organizations are initiating various projects by using ERP packages like SAP, Peoplesoft and Oracle, and how these projects often represent the single largest investment in an information systems (IS) project in the histori es of these companies. (Sumner 2000). Organizations are making such large investments in ERP because of the benefits that will be returned by it. Singla and Goyal (2006) lists out various benefits of ERP, which include shortening of the production cycles, accuracy accentuation regarding the demand for materials management, etc. While Singla and Goyal (2006) provided benefits of ERP’s implementation in the manufacturing side, Iskanius (2009) gives a list of benefits across various departments, which includes â€Å"cost reduction, productivity and quality improvement, customer service improvement, better resource management, improved decision-making and planning, and organizational empowerment†. Because