Importance and SWOT Analysis of ERP Implementation

Transcription

1 Importance and SWOT Analysis of ERP Implementation Mrs.Vishakha N Pawar 1,Ms.Pramila S Gaidhani 2 1 Lecturer, Computer Department, Guru Gobind Singh Polytechnic, Nashik 1 vishakha.pawar@ggsf.edu.in 2 Lecturer, Computer Department, Guru Gobind Singh Polytechnic, Nashik 2 pramila.gaidhani@ggsf.edu.in ABSTRACT In Industry or Academics, the system is continuously rebuilding their tools and mechanism in modern world for substantial growth. ERP is essential tool to survive in the world of technologies. ERP has become necessary in every organization to come up and to cope up with the new trends and technologies and also to survive with high class in modern society.erp abbreviation is used for "ENTERPRISE RESOURCE PLANNING". It is anintegrated tool used for survival of fittest by every organization in day today life. ERP should always work well without having any failure. As the organization will not be allowed or will not be ready to compromise with the failed ERP. The reasons behind the same are various factors such as human resources, cost, etc. Organization requires ERP which will sustain for long period of time, best quality in performance, efficiency, etc. Management always looks for palpable and impalpable factors which affects ERP implementation. Keywords: ERP,ERP System, Enterprise Resource Planning, SWOT, SWOT Analysis, Strengths, Weaknesses, Opportunities, Threats. I. INTRODUCTION: In the modern era of competitions, the organization gets the place in the heart of students and parents with various ways of technologies. In this different ways of technologies, ERP plays most vital role in the organization. ERP is getting popular in all organization to sustain in the field of education or academics. ERP is an integrated software module which makes complicated things in a simpler mechanism. ERP makes better communication between students, staff, management and parents. ERP make the organizations Administration management, assisting top level management to make effective decisions. The ERP consists of intenselyassociated interdependencies of business processes,software systems, and process reengineering and the risk get created with software systems and its applications.erp systems provide noteworthy benefits, and organizations have them with the aim of switching from ineffective standalonesystems, increasing communications betweenbusiness functions, increasing information processingefficiencies, improving customer relations, and improvingoverall decision making. Figure 1: ERP System The main objectives of Paper are Introduction to the ERP systems, need of ERP system, SWOT Analysis of organization's ERP systems and why these systems are important to the operations of Organization. ERP acts as a repository for all departments to get a data as common entity. The ERP have Secured database that is stable and fast. A. INTRODUCTION TO ERP: The Pillars of ERP Systems fororganizations: Admin, Students, Library, Payroll, HR, Accounts, Hostel, Transport, etc. 19

2 HOSTEL: 1. Student Enrollment. 2. Building and Room Information 3. Rooms Allocation. 4. Hostel Attendance. 5. Mess Bill Collection. Figure 2 : Modules in ERP ADMIN: 1. Create program, course, syllabus, fee heads, staff category, departments, Subjects, batches, etc. 2. User Role Management. 3. Manage Students. 4. Manage Fees. 5. Logins and Password Management. 6. Send SMS. 7. Client Activation. STUDENTS: 1. Enroll Students. 2. Student Roll Call List. 3. Summary of Round, Category. 4. Subject wise list. 5. Attendance. 6. Examination Marks. TRANSPORT: 1. Bus Master. 2. Route Master. 3. Fees. 4. Student boarding details. This all modules help the organization to run smoothly without having any interference or interaction of two departments. The flow occurs accurately without direct communication. The data which is saved can be used directly, accurately and paperless wok can be done. At the Organizational level, the team should be appointed to implement ERP. The team must learn or analyze the working condition of organization and should finalize the requirement. The implementation time for ERP is minimum 2-3 years to be in fully working state. ERP implementation is very time consuming and expensive process. B. STEPSOF ERP WORKING: LIBRARY: 1. Master Creation. 2. Member Creation 3. Transactions a. Issue b. Return c. Renew 4. Reports PAYROLL: 1. Pay sheet Report. 2. Salary Slip. 3. Salary Certificates. HR: 1. Fill Employee Details a. Add Faculty / Staff. b. Basic Pay Settings. c. Increments/Decrements. d. Allowances. ACCOUNTS: 1. Fees Receipts 2. Payments 3. Fine / Discount. Figure 3: Steps of ERP System Step-1-Analysis: It is pre step to Implementation. The users have idea in a mind and explore it on paper to share the idea between the various entities in organization. The deep analysis is done on the ideas and the record is made to pass to ERP Vendor.The requirement is drawn on paper with communication.one ERP coordinator is appointed and the person gathers the requirement from all entities. The ERP coordinator does the analysis of requirement and makes a document ready to pass is further. It establishes the expectations for functionality and identifies the system requirements which affect the software. Requirements 20

3 analysis includes determining communication needed with other applications and databases, performance requirements, user interface requirements, and so on. Step-2-Design: The next step to analysis is design. The design is done according to specification given by customer or person from Organization. Whatever is drawn on paper in analysis step is actually now drawn in various formats.a design should display an architectural structure that has been created using detectable design patterns, is composed of components that display good design characteristics, and can be implemented in an evolutionary fashion, thereby facilitating implementation and testing. A design should be flexible; that is, the software should be logically segregated into modules that perform specific functions and sub functions. A design should contain distinctiverepresentations of data, architecture, interfaces, and components.a design should create such data structures that are appropriate for the objects to be implemented and are drawn from recognizable data patterns. It determines the framework of a system to meet the specifications. This design defines the major modules and the interface of those modules, but it does not define the configuration of each module. The designer determines the external interfaces and tools used in the project. Step-3-Planning: This is an extremelydelicate phase. All of us know that wrongplanning in the areas of software development had distorted the existing as well asnew system and put the organization in trouble.one has to be very careful inbuilding the final plan. In the Planning Phase, the team way out in detail what to build, how to build it, who will build it, and when it will be built. In short, Planning will have schedule of everything included in process of ERP. During this phase the team works through the design to generate the solution, writes the functional specification, and prepares work plans, cost estimates, and schedules for the various deliverables. Step-4-Implementation: This is united effort done by the customers and ERP vendors. Thesuccessful implementation require the consolidation of all those who are associated itwith it. After analyze the need of ERP, implementation Phase, where actual Software development life cycle (SDLC) is going to implement, ERP implementation is the superior and profound process for organization. It brings together a various functions, personalities, procedure and ideas with the goal to form integrated organization. Next process is a construction of software according to its design using some appropriate software tools e.g. SAP, BAAN, Oracle Soft etc. The supreme and crucial process is testing, where we have to check whether the ERP is implemented according to its specification or not. The testing is to be done in different prospective like functional, managerial, operational etc. if everything verves as per plan then the delivery of the software package in organization is done for actual use. Before conferral the ERP into the organizational people, the ERP development team has to provide special training to all users. The aim behind the training is to give motivation to the employees to ERP specifications and the usability. Lastly the practical team at organizational level will use the ERP, for which it is actually created. The Maintenance phase is most important and is continuous, dynamic and time consuming process because none of the team member guaranty about the problems which may come after the ERP implementation. This phase reviews the ERP tool and monitor regularly.if any technical issue occurs, then according to it s the suitable resolving get done for sustaining continuous control over the ERP system. C. SWOT ANALYSIS PROCESS Initially, the team must analyze the need of ERP, and then have to finalize the solution for ERP. Before or after finalizing the solution, the main tool for analysis is SWOT analysis. The basic intention of SWOT Analysis is to find the Strengths, Weaknesses, Opportunities and Threats in the system. It is used to focus the different factors affecting the working of organization which is developed to fulfill mission and vision of the institute. The SWOT analysis concept is firstly introduced by Albert S. Humphrey in 1960 and The SWOT abbreviated for Strengths, Weaknesses, Opportunities and Threats. ERP helps us to identify the in-house and outdoor key factors affecting the working of organization. Any Organization while using or implementing ERP considers all factors which effects on the process ofsupervisory and handling the problems of organization. Figure 4: SWOT Analysis Process When the top level management gets ready to implement the ERP in their organization they call the meeting with the all concern people who have direct and indirect influence on ERP implementation from different level of organization 21

4 like Board Members, Managers, Head of Departments, Technical Staff, and Supervisors. The meeting gives the idea about the vision and mission of the institute and the aim of organization which can be achieved with ERP implementation. The meeting also elucidates the role of individual and groups in implementation process. When everyone is cleared with their role in the process, the management starts collecting the information about the current status of the in-house and outside situation of the organization.on basis of this information, organization starts to create a list of factors which will influence the ERP implementation. Once the list get finalize about the factors affecting on ERP implementation, the organization starts to divide the factors into two major categories in-house factors and Outside Factors. In-house Factors aremanageable and inside the organization environment. Outside Factors influences on the organization from the outside world, which are mostly not controllablefrom the organization.further the in-house factors are distributed into two sub groups, Strengths & Weaknesses of the organization. The Outside Factors are gets distributed in Opportunities and Threats.The next step in the SWOT analysis is to createthe matrix called as SWOT matrix The matrix consists the list of factors which comes under the Strengths, Weaknesses, Opportunities and Threats of the organization. Once the matrix is ready, the organization can study all factors affecting the working of organization. The factors may affect in various ways which can be advantageous or disadvantageous to the system. Figure 5: SWOT Matrix The last stepof SWOT analysis process is to analyze the strengths of the organization and keep them as armamentto achieve the target. Similarly organization pays attention on the weaknesses of the organization which they have to regulate and cover-up during the ERP implementation. With the same, top level management also looks for the opportunities in the outside world to take hold of with the help of their strengths during the ERP implementation. During the analysis and take hold of the opportunities the palpable and impalpable threats creates the obstacles in the ERP Implementation.This threat has to get monitored and controlled during the implementation of ERP. Strengths: They are factors that give astand to organization in the market. The Strengths depends upon the organization can go for ERP Implementation some of the factors are listed in the matrix like Robust System, Involvement to e-campus, Scheduling, Well ordered and skilled staff and last longterm mission & vision.the organization having strong financial hand can prepare a Robust System in the organization with ERP Implementation.ERP implementation processlast for long time so, it required more time schedule for better implementation in organization.it is easier to implement ERP if the organization have better infrastructure, otherwise it will take more time to create new setup for implementation. Human Resources are the main strength of the organization. And if the organizations have the well-ordered andskilled staffs, the thing are get easily accepted and implemented perfectly in most of the cases. Above all the strengths of the organization has the vitaland long-term mission and vision in Top level management of the organization which will always stand as supporting referendum for the ERP development team to achieve the goals and objective. Weaknesses: They are factors that can be destructive if used against the organization by its competitors or it can be detriments relative to internal environment of the organization.during the ERP implementation the role and support of Top level management plays a vital role and if decision making is having any Inflexible nature of the Top level management during the implementation the staff on other level of organization may not have confidence on the Top level and it may affect very badly on the ERP implementation. Sometime all the staff of the organization may not be technically sound as compare to the ERP development team.if the people who are ensuring the direct working position on ERP system then they must understand the System. If they botched in understand the System so it will be one of the weakest thing for the organization.thestaff of the organization is always denied to change their traditional working atmosphere and they are not in position to attain the new system.most of the Organization hires the experts for implementation and deployment of the ERP. After finishing the task the experts leave the organization.here the problem with respect to maintenances of the ERP occurs and if organizationdon t have staff that have the enough knowledge of ERP Systemintensely, so again the process get started and it increase the cost of process. Most of the organization is unsuccessful to analyze the necessity of market and customer requirement and by poor knowledge of the market the ERP implementation may get botched. 22

5 Opportunities: They are factors or situations which can bring a viable advantage in the market. The organization will never fails in market in achieving their goal if they always look for better opportunities. The main task for organization is to find opportunities in the market while planning ERP implementation.the main part for considering the opportunities in market for organization is customer.the mainopportunities by ERP in organization are central control or workflow.the next opportunities for ERP system are to create new strategies for improvement. The Opportunities are always present in market to stand in market at higher level. The higher the stand in market is higher the chances of winning. Threats: They are factors or un-favorable situations which can destructively affect the business or cause misfortune for organization. The very first factor comes in mind while ERP implementation is security for providing the data. As the data get shared from the different individuals or departments may be at same location or different geographical locationneeds more security. One of the most costly and important threats for the ERP implementation is Maintenance Cost. It requires continuous observing, time and staff in the process. The next serious threat is slow growth of the organization.the next important threat is Opponent of organization. If the opponent is using more advance technology as compare to organizations technology then it will be more horrible for the organization.after completing ERP implementation, the organization must have some staff who will be technically sound to solve the upcoming problems in ERP system which can decrease the dependency on the ERP development experts which are outsiders for the organization and it will reduce the cost of maintenance. CONCLUSION This paper highlights the Process of ERP implementation and process of SWOT analysis. It saysan Enterprise Resource Planning (ERP) system helps the organization to succeed their businesses in an effective and well-organized manner by providing cohesive and reliable information flow. The information received from this paper is required to have a continuous flow. Thus, ERP is represented as a useful tool to help and make the users easier with staff, skills and aspiration of an individual related to the objectives and the goal of the organization. It mainly highlights SWOT analysis is the process that shows or gives the organization the idea about the factors affecting on organization during the ERP implementation.this paper also describes the some factors divided into in-house and outdoor factors.the inhousefactors affect the system by inside environment which are more controllable by the organization itself.the in-house factors includes the Strengths and Weaknesses of the organization, which describe the Strength as main armament of the organization present inside on the organization and Weakness as some non-favorable factors as a detriments to the organization and it must overcome to achieve the goals. The paper lessens the outdoor factors like Opportunities and Threats which provide the favorable situation where the organization can convert their strengths into takings for the organization. At last the SWOT analysis gives new way for the organization on which business can go extensive, cost-effective and spread the success in ERP implementation. REFERENCES: [1] Dr. Ramdas S. Wanare, Amar R. Mudiraj (2014), Study the Importance of SWOT Analysis on ERP Implementation, Volume 3, No. 6, June 2014, Pp [2] Amar R. Mudiraj (2013), Erp: An Effective Resource Utilization Tool For Organization, Ijmbs,Vol. 04,Pp [3] Yasar F. Jarrar ', Abdullah Al-Mudimigh 'And Mohamed Zairi(2009) Erp Implementation Critcal Success Factors - The Role And Impact Of Business Process Management IcmltPp [4] [5] S. Kesharwani, Teaming ERP System Efficiently into an Academic State of Affairs Volume 255, of the series IFIP International Federation for Information Processing pp [6] [7]. Jennifer Lonoff, (2013) 13 Common ERP Mistakes and to avoid making them from [8]. EricY.Cheng,YingJenWang,(2006), Business Process Reengineering And Erp Systems Benefits, 11th Annual Conference Of Asia Pacific Decision Sciences Institute PP [9]. S. Axline, M.L. Markus, D. Petrie, and C. Tanis, Learning From Adopters' Experiences with ERP: Problems Encountered and Success Achieved, Revised for Enterprise Systems: ERP Implementation and Effectiveness. eds. Shanks, Seddon and Willcocks (2001). [10]. S. Kesharwani, ERP for Banking Industry, Management & Change. Volume 9, Number 2, pp , (2005). 23