Enterprise Resource Planning free essay sample

There are twenty KSFs considered in this study. They were chosen from literature review. The KSFs are classified into five stages of ERP implementation life cycle; namely: project preparation, technology selection, project formulation, implementation/development and deployment. To address the study objectives, a survey questionnaire was considered the most appropriate research method. It was sent to 74 companies that have been implementing ERP system for at least one year. The respondents are staff at management level, IT staff and users involved in the development and use of the ERP system. The survey received 248 responses from 740 quesitionnaires that were sent to the companies. To find the priority of KSFs on ERP implementation life cycle, a quantitative analysis is applied to identify the weighting of KSFs toward ERP implementation success. The success of ERP implementation can be measured through five indicators; namely: system quality, information quality, service quality, tactical impact and strategical impact. Based on the weighting of KSFs on each stage of ERP implementation life cycle, it is found that the communication is most critical KSF on project preparation stage (? 0. Cost reduction  : It reduces cost only if the company took accounting and reporting seriously even before implementation and had put a lot of manual effort in it. If they didnt care about it, if they just did some simple accounting to fill mandatory statements and if internal reporting did not exists of has not been financially-oriented, then no cost is reduced. Less personnel  : Same as above. Less reporting or accounting personnel, but more sales assistants etc. Accuracy  : No. People are accurate, not software. What ERP does is makes the lives of inaccurate people or organization a complete hell and maybe forces them to be accurate (which means hiring more people or distributing work better), or it falls. 2. Evaluate the importance of integrated information systems in an organization’s success This study proceeds from a central interest in the importance of systematically evaluating operational large-scale integrated information systems (IS) in organizations. The study is conducted within the IS-Impact Research Track at Queensland University of Technology (QUT). The goal of the IS-Impact Track is, to develop the most widely employed model for benchmarking information systems in organizations for the joint benefit of both research and practice (Gable et al, 2009). The track espouses programmatic research having the principles of instrumentalism, tenacity, holism and generalisability through replication and extension research strategies. Track efforts have yielded the bicameral IS-Impact measurement model; the ‘impact’ half includes Organisational-Impact and Individual-Impact dimensions; the ‘quality’ half includes System-Quality and Information-Quality dimensions. Akin to Gregor’s (2006) analytic theory, the IS Impact model is conceptualized as a formative, multidimensional index and is defined as a measure at a point in time, of the stream of net benefits from the IS, to date and anticipated, as perceived by all key-user-groups (Gable et al. , 2008, p: 381). The study adopts the IS-Impact model (Gable, et al. , 2008) as its core theory base. Prior work within the IS-Impact track has been consciously constrained to Financial IS for their homogeneity. This study adopts a context-extension strategy (Berthon et al. , 2002) with the aim to further validate and extend the IS-Impact measurement model in a new context i. e. a different IS Human Resources (HR). The overarching research question is: How can the impacts of large-scale integrated HR applications be effectively and efficiently benchmarked? This managerial question (Cooper amp; Emory, 1995) decomposes into two more specific research questions – In the new HR context: (RQ1): Is the IS-Impact model complete? (RQ2): Is the IS Impact model valid as a 1st-order formative, 2nd-order formative multidimensional construct? The study adhered to the two-phase approach of Gable et al. (2008) to hypothesise and validate a measurement model. The initial ‘exploratory phase’ e mployed a zero base qualitative approach to re-instantiating the IS-Impact model in the HR context. The subsequent ‘confirmatory phase’ sought to validate the resultant hypothesised measurement model against newly gathered quantitative data. The unit of analysis for the study is the application, ‘ALESCO’, an integrated large-scale HR application implemented at Queensland University of Technology (QUT), a large Australian university (with approximately 40,000 students and 5000 staff). Target respondents of both study phases were ALESCO key-user-groups: strategic users, management users, operational users and technical users, who directly use ALESCO or its outputs. An open-ended, qualitative survey was employed in the exploratory phase, with the objective of exploring the completeness and applicability of the IS-Impact model’s dimensions and measures in the new context, and to conceptualise any resultant model changes to be operationalised in the confirmatory phase. Responses from 134 ALESCO users to the main survey question, What do you consider have been the impacts of the ALESCO (HR) system in your division/department since its implementation? were decomposed into 425 ‘impact citations. Citation mapping using a deductive (top-down) content analysis approach instantiated all dimensions and measures of the IS-Impact model, evidencing its content validity in the new context. Seeking to probe additional (perhaps negative) impacts; the survey included the additional open question In your opinion, what can be done better to improve the ALESCO (HR) system? Responses to this question decomposed into a further 107 citations which in th e main did not map to IS-Impact, but rather coalesced around the concept of IS-Support. Deductively drawing from relevant literature, and working inductively from the unmapped citations, the new ‘IS-Support’ construct, including the four formative dimensions (i) training, (ii) documentation, (iii) assistance, and (iv) authorisation (each having reflective measures), was defined as: a measure at a point in time, of the support, the [HR] information system key-user groups receive to increase their capabilities in utilising the system. Thus, a further goal of the study became validation of the IS-Support construct, suggesting the research question (RQ3): Is IS-Support valid as a 1st-order reflective, 2nd-order formative ultidimensional construct? With the aim of validating IS-Impact within its nomological net (identification through structural relations), as in prior work, Satisfaction was hypothesised as its immediate consequence. The IS-Support construct having derived from a question intended to probe IS-Impacts, too was hypothesised as antecedent to Sati sfaction, thereby suggesting the research question (RQ4): What is the relative contribution of IS-Impact and IS-Support to Satisfaction? With the goal of testing the above research questions, IS-Impact, IS-Support and Satisfaction were operationalised in a quantitative survey instrument. Partial least squares (PLS) structural equation modelling employing 221 valid responses largely evidenced the validity of the commencing IS-Impact model in the HR context. ISSupport too was validated as operationalised (including 11 reflective measures of its 4 formative dimensions). IS-Support alone explained 36% of Satisfaction; IS-Impact alone 70%; in combination both explaining 71% with virtually all influence of ISSupport subsumed by IS-Impact. Key study contributions to research include: (1) validation of IS-Impact in the HR context, (2) validation of a newly conceptualised IS-Support construct as important antecedent of Satisfaction, and (3) validation of the redundancy of IS-Support when gauging IS-Impact. The study also makes valuable contributions to practice, the research track and the sponsoring organisation. a. List the technologies that increase the power and effectiveness of an ERP system. ERP (Enterprise Resource Planning) implementation differs in organizations structured into nearly independent business units, as they will each have different processes, business rules, data semantics, authorization hierarchies, every-day business operations, decision-making criterias and decision centers. In order to be able to respond to todays customer needs, software designers are struggling to provide custom-integrated solutions that would ensure standard systems requirements and also a platform for customized solutions. Still, customizing an ERP package can prove to be expensive and resource consuming and can influence the implementation of the standard benefits of an integrated system. Nevertheless, customizing an ERP suite gives the scope to implement smart and new solutions for excellence in specific areas while ensuring that industry best practices are achieved in less sensitive areas. In this paper, we will proceed to the analysis, presentation and comparison of the current most important technologies (like information methodologies and data warehouses) which are being used in development of the ERP systems. . Differentiate between commercial and open source ERP Open Source ERP and Commercial ERP It is a known fact that most big organizations select and implement Commercial ERP solutions rather than go with Open Source ERP software. Why so? What are the challenges then that Open Source ERP Vendors face when competing against a Commercial ERP package? Let us investigate and see how Open Source E RP Solutions stack up against the Commercial ERP counterparts. Time to Market The time to market, or the time it takes to implement a Commercial ERP package is generally longer (given that you may be subject to software availability timeline restrictions from the software vendor and implementation process methodologies from a large systems integrator). Typically, organizational processes need to conform to the software process itself, and effecting that change can take a long time. Open Source ERP implementations are generally used by smaller companies who are just setting up processes initially, are typically not averse to adjusting to a new process. For this reason, typical Open Source ERP implementations see smaller implementation cycles (mostly due to the simplicity of the project itself) Price Open Source ERP solutions are typically less expensive (most being completely free) to license than Commercial software. The only upfront cost associated with using them is the support and maintenance contract fees or some small amount as License fees when using a customized version that is being promoted by a specific company. But to assess true price/lifetime costs can be trickier! The following sections discuss this in more detail. Flexibility Open Source, means you now have the code, and can modify it yourself! How can a system provide more flexibility than this? Compare this to a Commercial ERP solution: To get any fix, patch upgrade or new functionality on your system and it will take time! However in case of an Open Source ERP you might need to keep your own team of developers to not only add the features, but to also maintain it yourself. So a complete IT Team may be required. This implies that even though the cost of initial software acquisition is low, the cost of keeping the software running can potentially be higher. Training amp; Ramp-Up Commercial ERPs typically need specific training for the developers/implementers (examples SAP, Oracle ERP) etc. But for Open Source, you have the entire source-code itself! Open Source ERP providers believe (as do most geeks) that there is no better documentation than the source code itself. Source code may be the best piece of documentation for a Developer, but for an End User it usually means nothing. While the code base is the most authentic documentation in a sense, but it takes time for someone to understand the organization of the code, workflows and how it is packaged. Commercial ERPs score over the Open Source ERP community because they have better documentation, many technology forums where developers can discuss their issues, find solutions, and most often a very large community to help you out if you need answers to tricky problems. SAP and Oracle Apps, probably have the world’s largest developer forums/community. If we consider the arguments above, Open Source ERPs seem to have an edge. But we rarely see a large organization going for an Open Source ERP solution. Here’s why I believe Commercial ERPs have an edge: Support Network/Communities/Forums There plenty of software professional service firms, who are willing to support a SAP/Oracle implementation. The eco-system is established and not only generates revenue for these implementation firms, but also delivers client value – that is proven. Isn’t it true that you will rarely get a Vendor to Support an Open Source ERP solution other than the Solution Provider themselves! If you are not sure that you can rely on a Vendor or your own capabilities, to support your current systems it might not be a good idea to invest in an Open Source ERP even if it is a fraction of cost today. You need to plan for adequate support, when you need it. And you need to plan ahead – at least   for a good 5-10 years! Tried amp; Tested Software Platforms Companies like SAP and Oracle have been in the ERP business far too long for anyone to have doubts about their implementation track record. Open Source ERPs are relatively new and do not have too many implementations to boast of. When deciding between a proven ERP solution and a new ERP solution (a decision on which your company’s future rides) you will tend to lean towards tried and tested methodologies wont you? Intellectual Property Many large clients of enterprise commercial software are themselves not in the business of writing and maintaining software. They would rather rely on specialists, and license the relevant technology from them. Also, they are usually wary about intellectual property rights, and using open source software – implies that they would have to contribute back to the software – that other companies can benefit from as much as them. This can be a big deterrent – and most companies do not want to share how they are leveraging a given enterprise software, with their competition. Needless to say, that commercial ERP vendors, also have the best Sales teams! Conclusion The best brand ambassador for Open Source today are probably Linux (big presence in Enterprise), Android (big presence in mobile, tablets), Firefox web browser, JBoss Application Server to name a few. However apart from Android and Firefox, not many are known for their user friendliness! The perception in the enterprise about Open Source is still very shaky if one comes to reliability (Linux and JBoss being the exceptions probably). Enterprises will swear about Blackberry security and reliability but not about Android will they (android being the more feature rich platform here! )? Similar perception goes with the Open Source ERPs. Open Source ERP solutions are still far from establishing a brand name for themselves (like Linux, JBoss). They probably will need to build communities like those for Linux and JBoss. They might also require angel investors like those that JBoss, RedHat, and Ubuntu have and at least a decade or more of serious concerted development in order to compete with Commercial ERPs 4. Explain the major functions of the Manufacturing and Production Planning module. 5. Discuss the three types of information essential for a successful ERP system 6. Introduction Tougher competition in the marketplace is generating the need to better optimize resources, improve profitability and keep customers satisfied. Companies are increasingly implementing Enterprise Resource Planning (ERP) software solutions to improve operations and provide faster customer response. Choosing an ERP solution that meets your specific business requirements will enable you to have a smoother implementation. If the software package is written for your industry, you won’t have to custom design a solution. Customized solutions are time consuming to implement and add unnecessary cost. One of the top reasons ERP implementations fail is because the software doesn’t meet basic industry specific business requirements. However; purchasing an ERP application is only half the battle. A well designed implementation plan is the key to success. e, finalizing objectives, formulating a training plan. Make sure you include first line workers as well as management on your team. Base the selection on the knowledge of the team not status of the employee. Examine current business processes: Have the team perform an analysis on which business processes should be improved. Gather copies of key documents such as invoices, batch tickets and bill of lading for the analysis. To start the team discussion, consider questions such as: Are your procedures up to date? Are there processes that could be automated? Are personnel spending overtime processing orders? Does your sales force and customer service personnel have real-time access to customer information? The team members should also conduct interviews with key personnel to uncover additional areas of improvement needed. Set objectives: The objectives should be clearly defined prior to implementing the ERP solution. ERP systems are massive and you won’t be able to implement every function. You need to define the scope of implementation. Ideally, the scope should be all inclusive. But practically, it is very difficult to implement. Examples of objectives would include: Does the solution reduce backlogs? Can the solution improve on-time deliveries? Will you be able to increase production yields? Develop a project plan: The team should develop a project plan which includes previously defined goals and objectives, timelines, training procedures, as well as individual team responsibilities. The end result of the project plan should be a â€Å"to do† list for each project team member. 1. Strategic Planning 2. Procedure Review 3. Data Collection and Clean-Up 4. Training and Testing 5. Go Live and Evaluation a. What is CAD/CAM and what are its advantages? 1. Eliminate extra and costly data translation steps between applications that are operating on the same 3-D model. Some systems offer a complete set of fully integrated applications for the complete process from part design through mold design, NC programming, electrode design and CMM inspection programming. 2. Automate more of the manufacturing authoring process: (a) automate NC and CMM programming by using design requirements (GDamp;T and product manufacturing information (PMI), and color coding) directly on the 3-D model; and, (b) store NC data inside the standard part’s 3-D model file. For example, the NC data inside a standard slide model can be easily updated to its determined design dimensions. 3. Use integrated validation tools throughout the process. Integrated CAD/CAM systems can include tools to validate (and even improve) part and tool designs: molded part manufacturability checks, injection molding simulation and tool motion simulation with collision detection. Before machining, validate NC data with integrated g-code driven machine tool simulation. 4. Keep your data organized so you can work in teams, work in parallel and react faster to design changes. For example, using a master model with associativity allows you to update your mold design, NC programs, electrodes and setup sheets when the CAD model changes. Associativity makes design changes go faster and simple changes can be updated automatically— they don’t require reprogramming because they automatically re-adjust. More than one designer can work on the same tool at the same time; and, you can start NC programming before the tool design is completed. 5. Share knowledge between departments so designs can be done right the first time with manufacturability taken into consideration. When everyone works on the same system, this is much easier to do and the benefits can be substantial. Unfortunately in some cases, designers do not realize the impact of their decisions on the manufacturing process. Design features that are difficult to manufacture can add extra costs to jobs. They can add extra manufacturing steps and extra NC programming time due to feature redesign. When NC programmers and designers work with the same system, it’s much easier for both disciplines to work together. Some CAD/CAM systems have the ability to copy features and store them in a library for later use or can create custom features. When this is the case, NC programmers can work with designers to specify features that include manufacturability considerations. Designers can reuse these features from a library (saves design time) with the confidence that manufacturing knows how to machine them. When you are able to start with a clean sheet and complete the whole process with the same system, the value of using one integrated CAD/CAM system pays off. Besides the process-based benefits summarized above, additional benefits are to be gained in the forms of reduced training costs due to one easy-to-learn consistent user interface, administration of one system and working with one vendor. b. Briefly explain the need for Sales and Distribution module (August 2012) Sales and Distribution module TO keep pace with rapid changes in the business world, companies need an integrated and flexible enterprise system that supports all aspects of their business with state-of-the-art functionality. This innovative solution should upgrade effortlessly and interface easily with third-party applications as well as have the ability to incorporate existing systems while extending its reach to the Internet and e-commerce. In todays competitive business environment, companies are increasingly being forced to streamline business processes. In a world where it is no longer enough to simply have the best product, companies are focusing on core competencies and closer partnerships over the whole supply chain. Here, increased efficiency in sales and distribution is a key factor to ensure that companies retain a competitive edge and improve both profit margins and customer service. In helping business to beat them on delivery, the Sales and Distribution module of eresource ERP systems offers a comprehensive set of best-of-bred component for both order and logistics management. Eresource ERP system is tightly integrated with the Sales and Distribution module. This integration enables the mapping and supply of single-site or multi-site organizations. Developing precise logistics planning for just-in-time deliveries, this system can also generate replenishment orders by using defined warehouse requirements. The following are the sales related business transactions:   Sales queries, such as inquiries and quotations Sales orders Outline agreements, such as contracts and scheduling agreements   Delivery/Shipment Invoicing/billing After sales support During sales order-processing the following basic functions are carried out:   Inquiry handling Quotation preparation and processing Contracts and contact management (order management) Monitoring the sales transaction Checking for availability Transferring requirements to materials planning (MRP) Scheduling the delivery Calculating pricing and taxes Checking credit limits Invoicing/billing Creating printed or electronically transmitted documents Depending on how your particular system is configured, these functions may be completely automated. The data that results from these basic functions is stored in the system where it can be displayed. Eresource ERP s Sales and Distribution module very actively interacts with the material management and financial accounting module for delivery and billing. Master of Business Administration MBA Semester 3 â€Å"Operations Management† Specialization OM 0011 – Enterprise Resource Planning (4 credits) (Book ID:B1233 ) ASSIGNMENT- Set 2 Marks 60 Note: Each Question carries 10 marks Describe the ERP inventory module. ERP Inventory module facilitates processes of maintaining the appropriate level of stock in a warehouse. The activities of inventory control involves in identifying inventory requirements, setting targets, providing replenishment techniques and options, monitoring item usages, reconciling the inventory balances, and reporting inventory status. Integration of inventory control module with sales, purchase, finance modules allows ERP systems to generate vigilant executive level reports. Features of Inventory Module: Online status of item quantity in terms of on-hand, on-hand, available, reserved, ordered, to order, rejected, defective and rework able quantities. Complete excise functionality and generation of excise registers * Multiple levels of classification of items * Quality Control based on QC parameters * Handling Material Rejections * Rejected Material dispatch to subcontractors * Linking of GRN to PO and Invoice * Gate pass – returnable/non return * Cenvat claim for capital goods * Analysis which help in maintaining optimum stock levels * Physical verification of stock * Re allocation of rework able stock * Multiple warehouses/branches/regional offices * Stock transfer – receipts from other warehouse Excisable items – Definition and Chapter allocation * Multiple units of measurement * Alternate items for Production Planning * Handling of non-stock low value items like stationery * Lot wise tracking of inventory at shop floor and main stores * Stock Valuation – LIFO/FIFO/weighted average * Material Requisition from different requirement areas * Purchasing and subcontracting * Receiving material against sales order processing, material requirement, subcontracting, gate pass and production requisition * Landed Rate of Items * Consolidation of all warehouses Consolidation at any level of company hierarchy * ERP inventory module covers all stock related functions of an organization. Stock management and valuation activities, which form the backbone of any organization generally, take a lot of time and resources. M- wan Inventory handles all the store activities of issues, dispatches, receipts and quality control. The lot wise stock of each item is maintained and various MIS are provided for tracking stock movement. b. Summarise the various features of ERP financial module When it comes o financial matters, it is always recommended to be organized, whether your requirements are very straightforward or not. There is a wide range of software packages to choose from simple programs where you record income and expenditure to the more sophisticated which allow you to import bank statements, look after your investments, set up budget. Enterprise resource planning, or ERP is a system designed to integrate both internal and external management information across an entire organization, including finance/accounting, manufacturing, sales or customer relationship management. It comes with a dedicated software application meant to automate the entire activity and to streamline the flow of information between all business functions of an organization as well as to manage the connection with the outside stakeholders. Well-designed software reap a wide array of benefits including a better performance in the business. MIE Solutions is the company that provides Financial Modules for ERP Software which gather financial data from different functional departments and generates accurate financial reports such as general ledger, trail balance, a balance sheet and quarterly financial statements. It also enables the information sharing between the functions inside the boundaries of the organization, irrespective of the geographical locations and facilitates a better decision making process. Taking into consideration the long term impact of different financial modules for ERP software, organizations are very cautions when choosing an application. It is a fact that once you start using this kind of software, it is very difficult to switch to another program. The significant financial investment and the complexities associated with the implementation of this software make imperative the use of the most reliable software. If you carefully evaluate the financial modules for ERP software provided by MIE Solutions, you can notice that the system is very easy to install, learn and implement in your core business process. It boasts a great usability and performance streamlining your work flow and improving productivity. Financial modules for ERP software cover the most important areas of job costing, cash flow, maintenance of general ledger, accounts payable and account receivable, manages fixed assets and produces required financial statements. Although it is a complex software, it doesnt require technical expertise but rather a basic training in order o prevent any further complications. This training is required just at the initial stages of implementation and thus it offers a great return on investment. The main goal of the financial modules for ERP software is to improve productivity of an organization by catering the specific and growing requirements and needs. It is worth mentioning that the financi al modules for ERP software represent the core modules around which other modules of the system revolve. Therefore, MIE Solutions has creating a solid, feature rich but still user-friendly system which can be easily integrated with other modules. The most important feature of the software include accounts receivable, accounts payable, general ledge, trial balance, profitamp;loss, balance sheet, debt, balance, creditors balance and cash/bank balances. It allows any organization to automatically distribute transactions for it comes with a built-in flexibility that reduces the amount of work required for specific processes. Financial modules for ERP software offer you a better control over your business activity for they represent a complete solution that meets and even exceeds your expectations. . a. Illustrate the role of ERP systems in Human Resources ERP Today: At present the primary advanced ERP vendors offering ERP solutions are SAP, Oracle, JD Edward,PeopleSoft,Microsoft Dynamics and Invensys. They focus on internet based architecture because of the raise in E-commerce and globalization of business (Garg and Venkitakrishnan, 2006). Few of these organizations are growing their ERP system with new modules and also have chan ged their names of ERP systems to catchy names such as Enterprise Suite, E-commerce Suite, Enterprise solutions etc. However, todays ERP is much more advanced than the Manufacturing Resource Planning (MRP II) and is famous today for non-manufacturing operations (Hunter, 2008). In the present day SAP is the global leader in inter-enterprise software manufacturing company and leading ERP supplier in the world. To have a wide-ranging applications, SAP idea was to give customers the ability to cooperate with a common database in an organization and today the corporations like IBM also use SAP products for running their business. The ERPs Human Resources Module Main Features A business is concentrated by four productive resources namely its Land, Labour, Capital and Enterprise to produce or sell products and provide services. Simultaneously while achieving business tasks, concentration must be also be given to the people who carry out these functions jobs i. e. , the organizations  Human resource  (HR). Human Resources are the companys people included in all hierarchy from employees to middle managers and non-managerial employees to the CEO and others (Jones, 2007). The management which involves the activities framed to recruit the best candidates suitable for the respective nature of the job and improve their skills and abilities by providing them good and proper support is called  Human Resource  Management (HRM). The five gears of HRM system are: recruitment and selection, training and development, performance feedback, payments and benefits, and labour relations (Jones, 2007). According to Kapp et al (2001), the usage of ERPs in Human Resource Module is each core part of HR practice is explained below. Recruitment, Retention:  This ERP module used to maintain the record of college visits for the recruitment process, candidates from consultancies and their resumes; list of candidates available for full-time or Part-time work etc. This HR module can be integrated with training management to link with the initial process of the selected candidates. Training Management:  This module tracks the newly enrolled candidates who are under training process. It also maintains the course description, course availability, review course assessment, traces the training cost and fixes a training budget. The most important thing about this module is that, the e-learning training sources are connected to the employees desktop which can be used for requirement. Finally, ERP records the employees performance during the training period which will be useful to be reviewed by the training supervisors. Payroll:  Employees attendance and their time of entry to work and exit are entered into the system to determine the number of work hours. This module tracks, check and reports both the hours of work and respective wages of employees. It also includes the process of calculating the taxes and deducts from the salary and also garnishee wages for charitable purpose like child support and for cancer patients. Time and Attendance:  this module is integrated with Payroll module. Apart from the roles of Payroll systems, it also concentrates on the sick leave of the employees. Time and attendance are easily recorded in the system by scanning the employee barcode which is located on every employees identity card. c. What is the purpose of gap analysis and how are the gaps fixed? Definition of Gap Analysis The process through which a company compares its actual performance to its expected performance to determine whether it is meeting expectations and using its resources effectively. Gap analysis seeks to answer the questions where are we? (current state) and where do we want to be? (target state). A method of asset-liability management that can be used to assess interest rate risk or liquidity risk excluding credit risk. Gap analysis is a simple IRR measurement method that conveys the difference between rate sensitive assets and rate sensitive liabilities over a given period of time. This type of analysis works well if assets and liabilities are compromised of fixed cash flows. Because of this a significant shortcoming of gap analysis is that it cannot handle options, as options have uncertain cash flows 4. How does an ERP system facilitate better decision-making? Decision making success The trend in information systems is toward implementing highly integrated enterprise-oriented systems, and the output of the system is a source of information related the managers behavior (Doinea et al. , 2011). ERP systems originated as an attempt to eliminate data redundancies, data inconsistencies and overall organizational inefficiency by integrating core business activities into one single database. Besides integration, the purpose is to enhance decision support from accurate and timely information (Madapusi and DSouza, 2011). Hence, an ERP system continually collects information and provides timely availability of the information for managing, accounting, reporting, data mining and communicating internally and with outside parties. ERP investment can support the responsiveness, control, reliability, and adaptability of firms and enable more effective decision making (Aral and Weill, 2007). Many studies reveal that ERP systems provide information for better decision making (Bernroider et al. , 2005; Davenport, 1998; Jain, 2008; ODonnell and David, 2000). Different decision-makers directly turn into ERP systems to access information in different organizational task (Madapusi, 2008). Basically, ERP systems improve quality of accounting information, develop alternatives and solve problem through the computer-based technology (Forslund, 2010; Griffin and Dempsey, 2011; Jain, 2008). ERP system capability is a part of computer-based technology for the acquisition, storage processing and communication that can improve both efficiency and effectiveness (Karimi et al. , 2007). Accordingly, ODonnell and David (2000) state that accounting information systems provided information to improve decision making when the information produced by IT (ERP systems) combines with IT user and IT environment. As mentioned above, the potential resources is realized when they are valuable, rare, costly to imitate, and non-substitutable (Chuebang and Ussahawanitchakit, 2009). ERP system capability helps to integrate the structure, people and process for creating valuable information to make decision as a successful factor for business to allocate a firms resource and maximize the effectiveness and goals. ERP system capability is business resource and utilization of information in decision-making strategies (Doinea et al. , 2011). Hence, the related hypothesis is postulated as follows. Hypothesis 4: Resource utilization effectiveness is positively related to decision making success. Accounting Information quality provides ERP systems to have attributes as reliability which is composed of accuracy, completeness, relevance and timeliness. It is used to deal with the usefulness in management functions. ERP system capability would improve decision making success through the accounting information quality (Ditkaew and Ussahawanitchakit, 2010; Doinea et al. , 2011; Karimi et al. , 2007; Madapusi, 2008). ERP system capability creates accounting information quality which is composed of accuracy, completeness, relevance and timeliness and effects decision-making quality. Decision makers are a factor that influences utilization of information (Doinea et al. , 2011). Moreover, it also found that ERP system capability supports storing, processing and disseminating accounting information both financial and non-financial data by improving decision making and planning (Doinea et al. , 2011; Karimi et al. , 2007; ODonnell and David, 2000). Consequently, the related hypothesis is postulated as follows. Hypothesis 5: Accounting information quality is positively related to decision making success. ERP Information quality in one of the critical parts affecting decision making which is the influence of various physical ERP system that affects their decision-making quality. Accounting module is an important part in business process that has to regenerate valuable information for decision making. Karimi et al. ,(2007) examined the role of information systems resource in ERP capability in manufacturing firms results and found that ERP capability affects business process outcomes (Karimi et al. 2007). ERP systems are a set of business process that change management accounting information and change business process such as the elimination of routine jobs, line managers with accounting knowledge, more forward looking information and a wider role for the making decision success (Galani et al. , 2010). Therefore, decision making success is a consequence of business process efficiency by integ rating all the function areas within an organization, to determine the extent to which ERP system capability enhance firms in achieving that. Hence, ERP system capability is often tightly connected to the resources based embedded in organization business process efficiency. The related hypothesis is, thus, postulated as follows. Hypothesis 6: Business process efficiency is positively related to decision making success. 5. What are the modules available in SAP R/3? SAP can be expanded as Systeme, Andwendungen, Produkte in der Datenverarbeitung in German or Systems, Applications and Products in Informations Processing in English. The German enterprise founded in the yr 1972 published module R/1 and module R/2 earlier. Still, with the advent of the client server architecture the module R/3 was released by the company in the yr 1992 and is a business management application founded on this architecture. The answer to the application has been extraordinary and it can be expressed that the R/3 module has needed the global software industry by storm. The R/3 module can be best described as a comprehensive and integrated information system. SAP R/3 is a now being widely used around the globe and is easily customizable for several organizations reckoning on their sizes of operation due its ABAP/4 programming language. The R/3 architecture is a 3 tiered one which includes a user interface, a software application and database server and is compatible with a mixture of hardware configurations. The R/3 module includes several operational modules like financial control, human resources, materials management, sales and distribution in increase to production planning. Though every last of these modules executes their procedures one by one they are integrated together wherever applicable. This feature makes accessing the complete business actions of a organisation feasible to all it employees. The module too profits through its easy to use interface and online help functionality. The SAP R/3 module is provided to the client with general features turned on and a host of optional features impaired. An corporation can manipulate the software corresponding to their particular needs by altering the settings of the database and tables in the module. Still, the module with its greatest features comes with a high price tag. The price of the R/3 module ranges anyplace between US$1. 5million and US$5million. Though the functionality of the module is highly amazing implementing the R/3 module is a tiring task not to refer the superior costs involved. Implementation and maintenance prices range between US$10million to US$100million and include the service charges of the SAP consultant who assists in the process. By And Large the implementation operation needs a lot of changes within the corporation and can be distributed into four primary stages the project preparation stage where SAP technical support enterprise is based and preparating the SAP necessities of the organisation are undertaken. In the 2nd stage, the blueprinting stage analysis of the cost of ownership, high availability and disaster recovery demands, staffing the support organization and training are executed. In the 3rd functional management stage the changes that the company need to undergo are designed and the SAP systems management and SAP computer procedures are established. The phase likewise involves testing the SAP system before implementation. The final preparation stage involves another testing operation and the cutover phase where the organization plans the process of transmission from the older system to a newer 1. It is obvious that the SAP R/3 module is a highly usable and integrated system for companies. Though the price of the application, maintenance and implementation are high the functionality of the module overweighs the costs needed. Some organisations around the globe have executed the R/3 module and benefited hugely. 6. a. Who is an end-user and why are they so critical for the success of the ERP implementation Top Factors Needed to Ensure a Successful ERP System Implementation Faculty and staff at 12 higher education institutions were asked what strengths their institutions had that would help them effectively implement a new ERP ystem. The strengths that consistently came out on top included the following: 1. Consensus on the Need to Change 2. Knowledgeable, Experienced, and Dedicated Staff 3. Supportive and Aligned Leadership 4. Technical Capabilities and Support 5. Institutional Teamwork Individually, each of these factors will contribute to the success of a large project or majo r change initiative. Collectively, these factors create an environment ready for success. Consensus on the Need to Change Consensus on the need to change is a key factor in helping institutions navigate their way through significant change. A natural human reaction is to work to eliminate pain or dissatisfaction. The more pain people experience with their current conditions or situations, the easier they accept the goals of a new and improved future. They will also work harder to reach these goals. When planning an ERP implementation, leadership should identify, clarify, and communicate the current situation and the resulting problems. Next, leaders must articulate and describe the future after the project or change is implemented. Institutional constituents will be more open to largescale change if they see both the present problems and the improved future. Different constituents will feel varying amounts of pain. In the case of implementing a new ERP system, some constituents are comfortable working around their outdated systems. In these situations, leadership needs to communicate the pain from an institutional perspective to help gain the consensus needed for the change (i. e. nconsistent data across the institution, the inability to create comprehensive reporting, and unsatisfactory student services). Creating consensus around the need for change is an important element in any organizational change initiative. Knowledgeable, Experienced, and Dedicated Staff Having knowledgeable, experienced, and dedicated staff is the second most-mentioned institutional strength to facilitate a successful ERP system implementa tion. These staff members are the people who are dedicated to the institution and care about its mission and service to students. They are also the ones who will be critically involved in the project and are most often affected directly by the institutional change. Whatever type of change you may be initiating, a key strategy to take advantage of this strength involves recognizing these people and engaging them early on and continuously throughout the project. These staff members can help you position the need for change, lead and manage your project team tasks, and provide great vehicles for two-way communication. Supportive and Aligned Leadership Alignment of and support from leadership was the third ost-mentioned strength that institutions indicated would be helpful when implementing their ERP system. Leadership buy-in and ongoing support are critical components in any successful change effort. Leaders should take responsibility for determining, clarifying, and communicating a consistent message of support for the initiative as well as reinforcing the need. In addition, especially with large-scale changes or projects like an ERP implementation, leadership must recognize the volume of work involved in implementing the change and the impact upon the various functions of the organization. Technical Capabilities and Support Specifically for large technology projects, institutional stakeholders indicated that having internal technical capabilities, strong technical support, and institutional commitment to technology are important for project success. Having these capabilities can facilitate the implementation process and the effective transfer of knowledge and necessary skills. This factor is also extremely important for other types of projects or change initiatives. Experience and skills in the applicable areas are needed to implement a project or initiative with an increased likelihood of success. If these skills are not available, hiring a third-party to provide those skills can be advantageous. Institutional Teamwork Not surprising, higher education constituents indicated that teamwork is a critical component for implementing large-scale projects or change initiatives. Teamwork can be built when working on a project; however, starting with people who general like each other and work well across functions can help make a significant change or large project easier and more effective. This knowledge is helpful when putting together project teams who will be assigned specific activities and tasks. If institutions have not implemented many enterprise-wide projects (i. e. an ERP system implementation), faculty and staff are unaccustomed to working on teams with other functional areas. In these cases, providing an orientation to working on a team can help familiarize people with and accomplish tasks. b. Explain the various factors to consider while choosing application platform