SIKKIM MANIPAL UNIVERSITY

A STUDY ON THE CRITICAL SUCEESS

FACTORS OF ERP LIFE CYCLE
IMPLEMENTATION AT GORANA GROUP
Submitted in Partial Fulfillment for the Awarded degree of
Masters of Business Administration
Session Winter 2016
 COMPANY PROFILE
GORANA GROUP is an excellent and distinguished service provider
situated in the Sukher Industrial Area of Udaipur since 1980.

VISION:
To increase our presence with retaining our core values for improvement
and development in industrial & construction field.

MISSION:
To create an organization which will provide our clients with sophisticated
and potential Industrial Engineering Products so as to cater to their needs
suitably and to their satisfaction. Customer satisfaction and flawless service
to our clients is our prime and soul concern.
 COMPANYS PRODUCT
INDUSTRIAL ENGINEERING PRODUCTS:
Water Sedimentation Plant
Filter Press
Slurry Pump
Gantry Crane
EOT Crane
Mobile Crane With Remote

OTHER INDUSTRIAL EQUIPMENTS:

Arm Crane
Marble Processing Crane
Diesel Storage Tanks
Chemical Storage Tanks
Water Storage Tanks
INTRODUCTION OF THE STUDY
Enterprise Resource Planning systems are business systems that are
expected to integrate all the business processes within organization, and since
ERP systems are complex and require extensive changes in the organization, it
is crucial that the implementation is successful. However, the implementation
of ERP systems is described as both risky and complex projects.

Enterprise Resource Planning (ERP) systems represent critical

organizational resources. ERP provides a total, integrated software solution to
manage an organizations core business and information processing needs. It
supports a process oriented view of the business, and increases the efficiency
and effectiveness of enterprise-wide business processes. Although ERP systems
can be competitive advantages to organizations, the high failure rate in
implementing such systems is a major concern. Some of these problems arise
from technical aspects of the system, the majority of these problems and
failures result from management, social and organizational issues.
LIFE CYCLE OF ERP SYSTEM
IMPORTANT ISSUES TO CONSIDER BEFORE ERP
IMPLEMENTATION:

o Fundamental Issues
o People
o The Organizational Change Process

STEPS OF SUCCESSFUL ERP IMPLEMENTATION:

Identifying the Data to be Migrated

Determining the Timing of Data Migration
Generating the Data Templates
Freezing the Tools for Data Migration
Deciding on Migration Related Setups
Deciding on Data Archiving
ERP IMPLEMENTATION PLAN:
Study Organizations Needs
Recruit End User Involvement
Assemble Project Team
Need of ERP Yes or No
Hire Consultants To Select Software And Approach
Recommend Modules And Options
Pre-Implementing Training
Install ERP System
Configure System
Convert Data And Test
Maintain System
 ADVANTAGES OF ERP SYSTEM
Integration among different functional areas to ensure proper communication,
productivity and efficiency

Design engineering (how to best make the product)

Order tracking, from acceptance through fulfillment

ERP Systems centralize the data in one place. Benefits of this include:

Eliminates the problem of synchronizing changes between multiple systems

Permits control of business processes that cross functional boundaries

Provides top-down view of the enterprise (no "islands of information")

Reduces the risk of loss of sensitive data by consolidating multiple permissions

and security models into a single structure.
DISADVANTAGES OF ERP SYSTEM
Customization of the ERP software is limited.

Re-engineering of business processes to fit the "industry standard" prescribed by

the ERP system may lead to a loss of competitive advantage.

ERP systems can be very expensive.

Once a system is established, switching costs are very high for any one of the
partners (reducing flexibility and strategic control at the corporate level).

The blurring of company boundaries can cause problems in accountability, lines

of responsibility, and employee morale.

ERP Systems centralize the data in one place. This can increase the risk of loss of
sensitive information in the event of a security breach.

The system may be too complex measured against the actual needs of the
customers.
 STAGES OF ERP LIFE CYCLE
ERP lifecycle is in which highlights the different stages in
implementation of an ERP. There are different stages of the ERP Life
Cycle implementation that are as give below:

Pre evaluation Screening

Evaluation Package
Project Planning
GAP analysis
Reengineering
Team training
Testing
Post implementation
 REVIEW OF LITERATURE
Bancroft (1998) provided critical success factors for ERP implementation
including top management support, the presence of a champion, and good
communication with shareholders and effective project management. This is
derived from discussion with 20 practitioners and from study of three
multinational company implementation projects.

Parr (1999) observes that ERP systems are complex than packages because
users are involved in the re-engineering process and factors associated with
project success from literature are important because of the substantial re-
engineering which takes place.

Larsen and Myers (1997) found that an ERP experience could be an early
success and a later failure. The following two factors would lead to failure:
Inappropriately Cutting Project Scope
Cutting End-user Training.
 OBJECTIVES OF THE STUDY
The main objective of the completed research is to present guidelines for
ensuring successful ERP implementation, providing factors associated with
the success of ERP life cycle.
To study what should companies do to make ERP implementation projects
successful.

To study about the indicators to evaluate ERP implementation success.

To study about the factors affecting the success or failure of ERP

implementation.

To analyze how can we define the success of ERP implementation.

To study of the factors should be considered most seriously to avoid failures.

 PROBLEM STATEMENT
In most cases, the cost of a full-scale ERP implementation in a large
organization can easily exceed 100 million, and the implementation usually
takes at least 2 years to complete. Not only do ERP systems need plenty of
time and money to implement, even successful implementations can disrupt
a companys culture, create extensive training requirements, and lead to
productivity losses. Furthermore, many experts say that over 50 percent of
U.S. firms experience some degree of failure when implementing advanced
manufacturing or information technology. Unfortunately, many companies
have already experienced significant troubles trying to implement ERP
systems, and these poorly executed implementations have had serious
consequences. One recent survey revealed that 65 percent of executives
believe ERP implementation has at least a moderate chance of damaging
their business. Obviously, it is very important to identify and understand the
factors that impact heavily on the success or failure of ERP implementation.
 RESEARCH METHODOLGY
DATA COLLECTION METHOD: Data is collected using Questionnaire. This
method is quite popular in case of big enquires. Private individuals, research
workers, private and public organizations and even government are adopting it. A
questionnaire consists of a number of question involves both specific and general
question related to ERP Life Cycle implementation.

PRIMARY DATA: Primary data are collected through a pre-designed, structured

and non-structures questionnaire. This questionnaire includes close-ended and open-
ended questions. To study the each questions based on the source, respondents
categorized on the basis of level of awareness i.e. highly aware, moderately aware
and low level of awareness.

SECONDARY DATA: Secondary data is collected from books, internet, registers,

records, journals, articles, magazines and annual reports of the organization. For this
purpose the library and internet are used.
 CONCLUSION
An ERP implementation is a huge commitment from the organization, causing
millions of rupees and can take up to several years to complete. However, when it is
integrated successfully, the benefits can be enormous. A well-designed and properly
integrated ERP life cycle allows the most updated information to be shared among
various business functions, thereby resulting in tremendous cost savings and increased
efficiency. When making the implementation decision, management must considered
fundamental issues such as the organizations readiness for a dramatic change, the
degree of integration, key business processes to be implemented, e-business
applications to be included, and whether or not new hardware need to be acquired.

In order to increase the chance of user acceptance, employees must be consulted

and be involved in all stages of the implementation process. Providing proper
education and appropriate training are also two important strategies to increase the end
user acceptance rate. The organization is also going through a drastic change, with
changes in the way businesses are conducted, the organization being restructured, and
job responsibilities being redefined.
 FUTURE RESEARCH
The research deals with one of the key issues in ERP related research
and has provided both academic and practical implications to the construction
business domain. Ideas for possible future studies raised by the main findings
of this research are as follows:

This research found that the most important factor for ERP success is
Function, which can increase both perceived usefulness and the quality of
the system significantly, and eventually lead to having ERP benefits.
Function was defined as the functionality of ERP software and its capability
of matching with the companys necessary business functions. The question
that arises from this finding is How can we define our necessary business
functions properly and how does the ERP system match our requirements for
the necessary functions? Without doubt, if we can address this issue properly,
we should have better chance to have ERP success and more benefits from
successful implementation.
 REFERNCES
1. Barker, T., and Frolick, M. N. (2003). "ERP Implementation Failure: A Case Study."
Information Systems Management, Auerbach, 20(4), 43-49.

2. Intermec. (1999). "Aligning Your Data Collection and ERP Implementation

Decisions." Intermec Technologies Corporation.

3. Umble, E. J., and Umble, M. M. (2002). "Avoiding ERP Implementation Failure."

Industrial Management, Industrial Management Society, 44(1), 25-33.

4. Sumner, M. (1999). Critical success factors in enterprise wide information

management systems projects. Proceedings of the Americas Conference on
Information Systems, Milwaukee, 1999, 232-234.

5. Rosario, J. G. (2000, May 17). On the leading edge: critical success factors in ERP
implementation projects, Business World (Philippines), p. 1
THANK YOU !