IGT ERP Implementation-Free-Samples for Students-Myassignment

Questions: 1.What are the Key Goals IGT wanted to achieve using an ERP System? 2.Discuss the Pros and Cons to Customizing ERP system. 3.How should IGT handle Change Management during ERP Implementation? Answers: ERP System Enterprise Resource Planning is the amalgamated management of business processes or business activities like finance, sales, marketing, product and production planning, manufacturing, inventory and materials management (Schniederjans and Yadav 2013). It is referred to as the sub section of business management software, which is required to control, collect, reserve and translate data from the above mentioned business activities. IGT International Game Technology or IGT is a leading manufacturer of lottery machines and slot machines. They used to depend on various different systems to manage their different departments of accounting, manufacturing, sales and orders of customers. When an executive of the organization needed to learn the status of a particular order, he/she had to undergo all sorts of system to find a simple piece of information. To solve this particular problem, IGT thought of adopting ERP package for their business (HassabElnaby, Hwang and Vonderembse 2012). The case study of IGT ERP Implementation answers some of the questions. The solutions are as follows: 1.Enterprise Resource Planning or ERP has various significant advantages that make it highly acceptable and popular amongst all organizations (Hung et al. 2012). The major benefits of ERP are as follows: Competition: ERP helps the organization in competition with all other competitors in the market. ERP makes the process easier for them. Efficiency: ERP increases the efficiency of any organization and thus makes it popular (Candra 2012). Scalability: Structured ERP systems are much flexible and scalable for any organization. Security: ERP systems are highly safe and secured and data does not get lost easily. Cost Effective Maintenance: ERP can easily maintained in low prices and thus can be known as cost-effective maintenance (Hung et al. 2012). The objectives that IGT wanted to achieve by implementing ERP as follows: The main goal of IGT was to integrate their applications smoothly. The accounting department of IGT wanted a single system, which will do all the accounting part of the company. Similarly, all other departments want their own system (HassabElnaby, Hwang and Vonderembse 2012). Therefore, it would be easier if they implement a complete ERP system. IGT implemented SAP R/3 version 4.6 ERP for their business. They wanted to integrate their three main business functions, which are development of product, manufacturing and finance through the ERP platform. IGT wanted to implement a package that is cost effective and simple to be implemented and thus they chose ERP (Ahmad and Cuenca 2013). ERP even helped IGT employees to find out easily which plant locations are building which of the machines (Hailu and Rahman 2012). Another objective of IGT for utilizing ERP was to design alterations and monitor costs in launching and producing brand new products, for example the EZ Pay cashless aspect. The above-mentioned statements clearly signifies the goals and objectives of International Game Theory, which they wanted to achieve by implementing ERP packages (Galy and Sauceda 2014). 2.Enterprise Resource Planning is a procedure through which an organization, mostly a manufacturer, integrates and controls the principal departments of the business (Hasibuan and Dantes 2012). The management team of an ERP system amalgamates various sections, for example the inventory, finance, sales, planning, human resources, purchasing and marketing. International Game Technology has adopted ERP for their business (Schniederjans and Yadav 2013). ERP has several advantages and disadvantages. The advantages of ERP are as follows: Best Collaboration: ERP can be easily collaborated with all other departments and they can provide best visibility of the organization Easier Activities: ERP makes the activities like sales forecasting, tracking of inventory, various orders and revenues of the organization easier (Hung et al. 2012). Security: ERP is highly safe and secure for any organization and thus it makes it popular. E-commerce Integration: ERP systems easily controls tracking and processing of online-based order. Several Modules: ERP has different modules implemented within it, for example, the marketing, SCM, CRM, human resource management, finance, marketig, project management and manufacturing (Galy and Sauceda 2014). Centralized Storage: ERP has a centralized storage that stores all the data and information in a single system. This system even helps in the back up of data. Cost Effective Maintenance: ERP can be easily maintained in low cost for longer duration and thus can be claimed as cost effective maintenance. Scalability: ERP is scalable and flexible for its business. Business Intelligence: ERP systems provide various functions of Business Intelligence, which provides overall vision on the processes of business and recognizes areas for improvements (Hailu and Rahman 2012). Efficiency: ERP increases the efficiency of any organization and thus makes it popular. In spite of so many advantages, ERP do have various disadvantages. They are as follows: Initial Cost: The initial cost of the ERP implementation is extremely high and many organizations cannot afford it easily. The software, testing, configuration and planning costs are too high in ERP. Time Consuming: Another disadvantage of ERP is that it is highly time consuming and sometimes, it often takes one to three years to get completed and become functional. Excessive Customization: Little customization cannot integrate the business process with ERP system (Galy and Sauceda 2014). Migration: Any kind of migration of existing information to the ERP system is nearly impossible and thus switching to a new system becomes highly risky for any business. Indirect Costs: Indirect costs are incurred for the ERP implementation. IGT should have kept in mind the above-mentioned advantages and disadvantages before implementing ERP in their business. 3.Implementation of ERP in any organization should be done carefully. There is a drastic change after the ERP is implemented. The organizations stakeholders play significant roles in the selection of ERP, the planning, implementation, adoption and ongoing support phases (Hailu and Rahman 2012). The roles of the stakeholders are of various types. Stakeholders are those groups of people or individuals within a particular organization, who have a stake in the outcome of an ERP implemented software project and whose reinforcement is needed to launch such a project, operate it further to a successful accomplishment and make sure that the product is used completely. Stakeholders have the authority to reinforce a project towards success. They lead the organization in selecting the perfect ERP package that can help IGT to attain its objectives (Ahmad and Cuenca 2013). Moreover, they can even help IGT in the implementation process of ERP. The stakeholders of the organization also handle the c hange management of IGT. At first, the scope of the change is determined and then the scope of incorporating the change is determined. The stakeholders then either approve or reject the change in IGT. Finally, the ERP is implemented in IGT (Hasibuan and Dantes 2012). Thus, IGT can manage or control change management with the help of the stakeholders References Ahmad, M.M. and Cuenca, R.P., 2013. Critical success factors for ERP implementation in SMEs.Robotics and Computer-Integrated Manufacturing,29(3), pp.104-111. Candra, S., 2012. ERP implementation success and knowledge capability.Procedia-Social and Behavioral Sciences,65, pp.141-149. Galy, E. and Sauceda, M.J., 2014. Post-implementation practices of ERP systems and their relationship to financial performance.Information Management,51(3), pp.310-319. Hailu, A. and Rahman, S., 2012, June. Evaluation of key success factors influencing ERP implementation success. InServices (SERVICES), 2012 IEEE Eighth World Congress on(pp. 88-91). IEEE. Hasibuan, Z.A. and Dantes, G.R., 2012. Priority of key success factors (KSFS) on enterprise resource planning (ERP) system implementation life cycle.Journal of Enterprise Resource Planning Studies,2012, p.1. HassabElnaby, H.R., Hwang, W. and Vonderembse, M.A., 2012. The impact of ERP implementation on organizational capabilities and firm performance.Benchmarking: An International Journal,19(4/5), pp.618-633. Hung, W.H., Ho, C.F., Jou, J.J. and Kung, K.H., 2012. Relationship bonding for a better knowledge transfer climate: An ERP implementation research.Decision Support Systems,52(2), pp.406-414. Schniederjans, D. and Yadav, S., 2013. Successful ERP implementation: an integrative model.Business Process Management Journal,19(2), pp.364-398.