ERP system implementation

Reasons for failure of ERP system in Wal-Mart Company

Compatibility issues- an ERP system should be compatible with the needs of the organization. In addition, the systems should be compatible with the systems of the competitors (Kurbel, 2012). Some Wal-Mart competitors are seen to use different ERP system which is a problem. Wal-Mart should ensure it uses compatible ERP systems with other companies and competitors. Wal-Mart faces compatibility problems since it uses dioffrenct legacy systems with other companies and this has caused failure in the use of ERP systems.

Complex usage- the ERP systems require training on how they are to be used. Wal-Mart Company did not train all its employees on how to use the ERP systems thus causing failure on the ERP system implementation (Kurbel, 2012). Training on how to use ERP systems is expensive and takes time therefore Wal-Mart failed to invest the money and time on the employees therefore causing failure on the implementation process.

High restrictions- the ERP systems require high installation and maintenance costs and at the same time have a number of restrictions (Kurbel, 2012). Wal-Mart was challenged by the high restrictions which require the organization to remain flexible in implementing and using the systems.

High maintenance costs- the ERP systems are maintained at high costs compared to other software packages (Ray, 2011). They have high installation and restriction costs as well as the maintenance costs. Wal-Mart chose to use the cheapest software in its management which is easily accessible to all therefore putting the organization as a risk. The software is risky to use thus causing ineffectiveness in its management.

ERP systems use mitigations

Wal-Mart Company needed to train all employees on the usage and implementation of the ERP system (Kurbel, 2012). The systems were new to the company thus it needed to provide proper training to all the employees since ERP systems are important to the organization. The company needed to invest its money and time in giving employees the training on the latest software since the organizations need to advance its technology.

Wal-Mart Company needed to remain flexible as the ERP systems require companies to remain flexible since they come with high restrictions (Ray, 2011). In order to manage the organization using the ERP systems the organization needed to remain flexible.

Wal-Mart organization needed to learn on the software used by its competitors and other companies as well. The organization needed to understand the software used by other organization since it would help them remain compatible with whatever software other companies use.

Wal-Mart organization needed to use the most advanced software package which is not easily used. The organization needed to use a more complex ERP system which is not accessed by all people and incur training costs on employees. The organization needed to come up with the best ERP system which will ensure it remains successful.

Part B

Enterprise Resource Planning (ERP) systems can be defined as the software packages used to integrate all the organization’s data into a uniform system known as information system (Madu & Kuei, 2005). An ERP system collects all data and uses one database which holds all the organization’s information. An ERP system is known to use several hardware and software components in order to achieve a flawless integration. Large retail chains are known to rely heavily on the ERP systems since they want their data integrated. The ERP system is used by large organizations since all departments are able to share a single database thus enhancing good communication amongst the departments. Wal-Mart is an example of an organization that uses ERP systems in managing its large business.

Two examples of the ERP systems current products include;

• SAP (systems, application and products in data processing) is a major ERP system which is used globally but mainly used in German where it has been successful in ensuring businesses are managed (Madu & Kuei, 2005). It provided retail solutions and is aimed at the retail market where it is scalable which is one of its advantages. The SAP product is able to describe the market standards used by the system thus able to ensure the retail businesses are effectively managed.
• Microsoft dynamics- Microsoft Dynamics is a group of the Microsoft Company that provides ERP systems to other companies. The company offers the flagship product known as the Microsoft Dynamics NAV ERP solution which is widely used by retail companies in ensuring they manage their businesses effectively and efficiently (Madu & Kuei, 2005). The product is easy to use thus remain attractive to most companies.

Companies should ensure they use ERP systems in managing their businesses and ensure they remain flexible. Companies should use the systems which are easy to use so that employees can learn how to use them easily. Companies should also ensure they use safe ERP systems in order to avoid losses and remain competitive disadvantaged. ERP systems are important since they are able to ensure departments are able to work together and information flows well within the organization. For instance in the large retail companies, all employees are able to tell prices of all products if they are using the ERP systems.

Part C

Microsoft Company is one of the companies that use SAP as a software in managing its organization (Copeland et al, 2015). The organization does not employ head of departments who lack SAP certificates thus a SAP certificate is a requirement. SAP certificates are offered in most of the universities since the software ensures that the organizations are managed effectively and efficiently. Microsoft Company offers a number of products and services to its customers including the office software suit. The company also provides products such televisions, videogames, mobile phones and internet access (Copeland et al, 2015). In order to get employed at the company as head of department, it is a requirement that one should have a SAP certificate which shows that that person has knowledge on how to use the software. The software is important and should be used not only by managers but other employees as well so that the organization can remain effective. Microsoft is an example of a company that has remained successful because of its continuous use in the SAP software (Copeland et al, 2015). Other companies should learn from the company since the software has been successful used in ensuring the company remains successful. Microsoft competitors need to use software that is compatible with the company in order to ensure they do not remain competitive disadvantaged. Employees working for the organization need to ensure they use the software in learning all the products and services provided by the company. The software is important and thus should be used by all companies. In addition, individuals should ensure they have SAP knowledge since it has been a requirement for employees to learn on the SAP software and its effectiveness on managing organizations.

References

Copeland, M., Soh, J., Puca, A., Manning, M., & Gollob, D. (2015). Microsoft Azure:       Planning, deploying, and managing your data center in the cloud.

Kurbel, K. (2012). Enterprise Resource Planning and Supply Chain Management:            Functions, Business Processes and Software for Manufacturing Companies.       Berlin: Springer Berlin.

Madu, C. N., & Kuei, C. (2005). ERP AND Supply Chain Management. S.l.: Chi   Publishers.

Ray, R. (2011). Enterprise resource planning. New Delhi: TATA McGraw Hill     Education.