30-06-2012, 12:50 PM
Enterprise information systems project implementation:
A case study of ERP in Rolls-Royce
Case study on ERP implementation-Rolls Royce.pdf (Size: 232.21 KB / Downloads: 74)
Introduction
The global nature of modern marketplace
requires active players to internationalise their
operations. In the past, companies were used to
competing based on one or two competitive
performance objectives such as price and quality.
However, present markets demand both price and
quality in addition to greater flexibility and
responsiveness and thus today’s organisations
must compete based on all competitive objectives.
In order to achieve such simultaneity in performance
objectives, some organisations have decentralised
their operations by global outsourcing of
activities. This places enormous challenge on
companies to achieve a co-ordinated and integrated
supply chain.
Enterprise resource planning
In the 1990s innovations in information technology
led to the development of a range of
software applications aimed at integrating the flow
of information throughout a company, and these
commercial software packages were known as
Enterprise Systems. During this period one particular
enterprise system called ERP caught the
attention of some of the worlds largest companies.
It has been estimated that businesses around the
world have been spending almost $10 billion per
year on ERP systems. ERP aims to integrate
business processes through the support of an
integrated computer information system (O’Brien,
1999).
Implementation of ERP
ERP when successfully implemented, links all
areas of a company including order management,
manufacturing, human resources, financial systems,
and distribution with external suppliers and
customers into a tightly integrated system with
shared data and visibility (Chen, 2001). Potential
benefits include drastic declines in inventory,
breakthrough reductions in working capital,
abundant information about customer wants and
needs, along with the ability to view and manage
the extended enterprise of suppliers, alliances and
customers as an integrated whole (Escalle et al.,
1999).
Rolls-Royce—case study
In this section, a case study conducted at Rolls-
Royce investigating the implementation of ERP
(SAP) is discussed. The case study starts with
introducing the company and its background,
presenting the status of IT before and after the
implementation of SAP, and giving the detail
chronological phase of the implementation of SAP
in Rolls-Royce. Also, the research methodology is
discussed. The implementation of SAP in the
company and project risks is presented.