Enterprise Resource Planning systems are popular tools for businesses to streamline and bring together various aspects of the business. ERP systems are desired because successful implementation can cut the administrative costs for an operation by 20 percent, as well as improve all aspects of the operation by 20 percent (Abbas, 2023).
Amazon is a company that recently implemented an ERP system. SAP is the ERP system chosen by Amazon due to its financial capabilities and voice recognition. SAP can calculate the financials, as well as maintain customer information, track sales and inventory (Abbas, 2023). It brings different aspects of the business together for a better visual of business performance. An accurate understanding of business performance aids in decision- making and the ability to remain competitive. The implementation of SAP can be considered highly successful because it streamlined the financial accounting process. However, the success of the implementation is dependent on the process of implementation.
Abbas provides a list of steps that should be met for successful implementation. The first step in the process is planning; followed by the ERP system choice. After the choice has been made, the system can be implemented by constructing it to meet the needs of the business. After the system has been designed, it can be tested, and users can be trained. The last 2 step of the process is implementation and support (Abbas, 2023).
Not all implementations are successful. Revlon is an example of an unsuccessful ERP implementation. After Revlon’s acquisition of Elizabeth Arden, Revlon opted to implement SAP because both companies used different ERP systems. The goal was to bring all the business under one system. However, the implementation prevented one of the plants from producing products and the company reported a loss in sales of 6.4 million dollars. Due to the incapability of filling orders the stock price dropped considerably. The failure in implementation can be attributed to a design flaw in the ERP system that failed to meet the needs of the business. A lack of experience with SAP also contributed to the failure of the implementation (Top 5 ERP implementation Failures.., 2023).
References
Abbas, T. (2023, February 13). Successful ERP Implementation Examples. CMI. https://changemanagementinsight.com/successful-erp-implementation-examples/
rohitg@grazitti.com. (2023, December 14). Top 5 ERP Implementation Failures: Costs, Causes, and How to Prevent. Spinnaker Support. https://www.spinnakersupport.com/blog/2023/12/13/erp-implementation-failure/
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