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Challenges Of Enterprise Resource Planning

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Enterprise Resources Planning (ERP) systems are introduced to handle more complex transactions as a highly dependable system(ref). (ref) states that (ERP) helps organisations to gain competitive edge by integrating all business processes. However, survey results have shown that majority of organisations,“agreed or strongly agreed that their ERP systems were essential to the core of their businesses and that they "could not live without them” (Wailgum, p. 1, 2015). This suggests that ERP systems play a crucial role in all types of organizations. ERP systems are software systems for business management to support organizational areas such as planning, manufacturing, sale, marketing, accounting, finance, human resource management, etc. (Curtis …show more content…
This indicates that ERP allows organisations to integrate different activities across the company, and it is one of the reasons that organisation implement ERP systems to improve the efficiency of the business process. A number of researchers highlights that organisations that have successfully implemented ERP systems are reaping the benefits of integrated working environment and operational benefits to the company. Although not all ERP implementations have been successful, and this proven by the number of horror stories of ERP implementation (ref). This essay evaluates why ERP required in organizations, what are the major benefits of using ERP in organizations and the challenges of ERP implementation. Two different case studies are used, to illustrate the arguments and conclusions of this essay. These are a case study of ERP Implementation in Mesfine Industrial Engineering Pvt. Ltd that base in Ethiopia and another case study in Portugal ERP system in the hospitality …show more content…
MIE used over five systems before implementing ERP systems. The case study of MIE illustrates that ERP were implemented because the legacy systems were expensive to operate, and the systems did not provide an accurate information, also there was lack of communications between individual’s sites (Boltena and Gomez, 2012). The case study suggests that, MIE straggle to keep the legacy systems, as it was not supporting their business strategy. However, MIE should recolonized the need for ERP systems sooner. To implement ERP systems organizations require investments of money, resources and time (Schiff, 2012). MIE managed to implement ERP systems successfully but, while MIE ware implementing the systems, the MIE take into account the history success and failure cases to help them to avoid all the possible obstacles, which helps them to achieve a successful ERP systems (Boltena and Gomez,

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