I. General Integration Problems
i. Mutt, N. (2010): Role-based ERP implementation is continually a tough task for any organization.
ii. Implementation of role-based ERP systems is not only a technological but a socio-technological challenge that calls for modification of the current applications and remodeling critical enterprise processes so as to enhance ERP implementation.
iii. Most small and medium enterprises cannot meet the expense of adopting an existing role-based ERP system owing to its staggeringly high cost and complexity in implementation.
iv. To be successful in implementing role-based ERP systems, corporations need to be extremely heedful.
v. Companies need extra resources to come up with a pre-implementation strategy for role-based ERP software.
vi. The process of enterprise software implementation is environed by diverse challenges in relation to fiscal provisioning for the procurement of role-based ERP system and services, and assessment of various role-based ERP systems.
II. Marc, S. Feb. (2002): Lack of Proper ERP Management
i. Elusive ERP implementation can cost firms up to hundreds of millions of dollars in profits and revenues.
ii. Demand for conversion or change of platform can come along with serious consequences if not properly done.
iii. If a system is overly integrated, it may take a long time to learn hence losing revenue in delayed processing.
iv. Intended consumers my dissent and oppose changes in the business process.
v. Intended consumers may receive inadequate training.
vi. Workers may not understand the freshly installed role-based ERP system, which my consequently result to low performance.
III. Technological Intricacy: Lowe, A. and Locke, J. (2008); Aiken, P., (2002); Bingi, P., Sharma, K., and Golda, K. (2002); Rogers (1983).
i. Role-based ERP systems are possibly the most intricate and comprehensive of enterprise information systems.
ii. Role-based ERP systems are based on novel powerful technologies that demand very different sets of proficiencies to legacy systems.
iii. Managers get it extremely challenging to handle the technological intricacy of various platforms, as well as to align the technological potency of new enterprise system.
iv. Role-based ERP system implementation is so intricate that it has demonstrated its difficulty for many companies Sawah et al. (2008).
v. Businesses that look at role-based ERP to as an intricate organizational solution are in all likelihood to disseminate it tardily and in throttled capacity.
IV. Cost of ERP Technology
i. “ERPs are notoriously expensive, both in terms of the time necessary to implement them and the financial cost to purchase and implement them” (Lance, M., 2010).
ii. It takes up to four years to implement a single ERP programs, and can cost a lot.
iii. The total cost of implementing pre-coded ERP system could be somewhere from three to five times its procurement price Wagner, J. (2006).
iv. Budget of hiring consultants, plus all other related expenses can account for up to 30% of the general budget for the implementation, Johnston, S. (2002).
v. Role-based ERP systems are typically costly to procure and implement in business Hedelin, L. and Allwood, M. (2002).
vi. The shift to role-based ERP systems is a task of stunning scope and the quoted costs have the capacity of making any financial manager nervous.
vii. More money is needed for consulting, reworking, integration assessment and many other related costs that may come up before the role-based ERP systems start to benefit the company.
viii. Role-based ERP projects are in all probability to drain organizational resources and funds (Koch, C., 2001).
V. Organizational Change
i. Implementing ERP system is not only a software project, but it is also an organizational transformation project: Umble, J., Ronald, H., & Umble, M. (2003).
ii. ERP implementation projects demand collaboration, joint effort and planning for organizational change which are hard to accomplish.
iii. Implementing ERP systems effectively is not a simple task due to key modifications to the company’s commercial processes (Wagner, L., Scott, V. and Galliers, D., 2006).
iv. The implementation project causes enormous organizational changes because of the many practical modules involved.
v. Introducing new technology may cause enormous layoffs of staff and confidence problems (O’Brien, J., 1997).
vi. Solutions: O’Brien, J. (1997).
VI. Still to read:
Pinto, K., and Slevin, P. (1987). Critical Factors in Successful Project Implementation.” IEEE Trans. Eng. Management.
Stedman, C. (1998). ERP Can Magnify Errors. Computerworld, 1.
Chung, B. (2007). An Analysis of Success and Failure Factors for ERP Systems in Engineering and Construction ﬁrms. Thesis, Univ. of Maryland, College Park, Md.