Critical Review on Enterprise Resource Planning (ERP) January 7, 2008
Posted by GI in business process reengineering, organizational change.Tags: business process reeningeering, enterprise resource planning, ERP, organizational change, organizational development
add a comment
This essay discusses ERP implementation in BPR project, with an emphasis on its fit to business vision and reengineering objectives, and the impacts of ERP on form and cultures. This essay argues that the tension between uniformity, in ERP system is built, and the diversity of business processes and organizational is one of the possible reasons of ERP project failures. ERP is suitable only for companies that follow its logic. These companies gain benefits from ERP system since they able to reconcile such a tension. Moreover, ERP is capable to transform organization a sense that it pushes the implementing companies to streamline their organizational and create new cultures which less hierarchical and flexible. To some extent, it the companies to empower their people. However, due to ERP capability to business processes, some companies uses ERP system to exert more control and create less autonomous culture. This particular practice would end up with disempowerment amongst their employees, and it contradicts one of process reengineering objectives, which is to improve quality of work life.
Keywords: ERP implementation, business vision, process reengineering objectives,organizational development.
