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This case study is providing the information of the implementation of Enterprise Resource planning in public sector and spends several years from the initial planning process. This paper describe the implementation on first large scale public sector which apply on over 50 different agencies in the state of Pennsylvania government and describe the issues, success factor,implemenatation strategies and lessons learned as compared to private-sector Enterprises Resource Planning implementations. The Enterprise Resource planning helping the Government to increased their business process and enabling the public support service and integrated processes and improves the quality of public-sector decision making and build more effective e-Government application.
In this paper author explain the ERP implementation on PA (The US state of Pennsylvania) is a public sector organization that has implemented and deployed a large-scale ERP implementation across 57 of its 59 agencies. This is the first and largest successful public-sector implementation with budget of over $300 M and spanning 3.5 years. But they faced lot difficulties to implement the same model as compare to private sector. There many key differences between public sector and private sector such as- Culture, Organizational Structure, Top Management Commitment, Identify Appropriate Process Owners, Project Team, Budgeting and Allocations, Availability of Best Business Practices, Customer Identification.Fuding sources are also different, government agencies have very complex budgeting and allocation process compared to the private sector. Overall most of the public sector share same requirement globally but each country have different trends.
Today's business environment is complex and dynamic, called for information technology support for real time decisions making to save cost and time, improve customer services, assess risk and add value in business for a competitive advantage I.T has changed the face of every sector weather it is public or private sector it is basically help full in following things and they are as follows -
1. Quality and Efficiency - Significant improvement in quality and efficiency of customer service, production and distribution.
2. Decreased cost - IT supports staff compared to the nonintegrated legacy system that was replaced by new ERP system ( in case of black out period it was reduced by 4 days)
3. Decision support - ERP provided vital cross functional information on business performance quickly to higher authorities to make their decisions in a timely manner.
4. Enterprise Agility - it breaks down many former departments and functional walls or "silos" of business process. a more agile and adoptive organization and work force that can move easily capture new opportunities .
Research problem addressed by the author
Research was basically descriptive in nature it was not exploratory because the topic was not fully new to us. in the case study the author has mentioned few things like the interview was basically semi structured, unnecessary cost of implementing like vise proper testing should have being done a proper format was to be prepared on their part like how to carry out research in a proper manner (Delphi technique would had done much better work there. ) but somehow afterwards with the help of private players they were able to manage it effectively and later it had become Causal research because they were trying to find out cause and effect relationship of the program as data are available in case study.
Several success factors are recognized and explained in addition to unique implementation strategies that promote knowledge transfer. There are few ERP module which is implement within agency and department, the SME (Small and medium enterprises) ERP implementation applied on various governmental agencies in Australia, Germany and US. The large-scale ERP deployments have been prevalent in the private-sector; there have been few successful attempts to integrate multiple agencies of one public-sector organization using one single ERP package. But most of firm analysis the implementation of ERP takes too much time to producing the results.
Degree of Contributions/originality
The degree of contribution was basically when we go for ERP package, you are buying a solution for today's requirement with capabilities of meeting tomorrow's requirement .It helps to change business process easily as corresponding process/practices are readily available for deployment .ERP package enables you to remain dynamic and flexible in business operations a good ERP solution also paves way for expanding the I.T application scope to S.C.M, C.R.M, P.L.M.
Firstly the government (public sector) they were basically FOLLOWERS and private sector was PIONNER in this field so they got the first movers advantage and with the help of their experience they taught P.A how to implement ERP by giving their best suitable policy measures after wards PA (state of Pennsylvania) had got revenue generation program like donors, federal state or municipal government which made their work easier to do.
Though the work took lots of time approx 5 years but slow and study wins the race and somehow it was successful, timesaving, and cost-efficient. The thing is in 80% of the work place it was successful and if it gets political support then definitely it is going to enhance its working further.
The critical success factors of ERP systems mainly include proper implementation and usage. Beside this there are several other factors that decide the regular functioning of ERP in organizations. While many organizations have not incurred the necessary benefit in terms of money and other measures there are lots who have witnessed multiple profits. Studying them will help in understanding the critical success factors for ERP implementation. They will help in deciding ERP success. Basically Companies very well knowledge of what is Enterprise Resource is Planning after that they implementing them. Companies are adopting the enterprise resource planning because they have need to enhance the task and give better platform for the organization, enterprise resource planning produce faster work done and better result. Before implementation of enterprise resource planning companies should needed to resolve issues which are basic root of success ERP system. Enterprise resource planning calls for different operations and applications in different industries. Each industry has their own loop hole and advantage in using the enterprise resource planning applications program.
The implementation of enterprise resource planning for small business massive money investments. The budget was reasonably manageable to small business group. There is no confusion or too say about benefits. But it's not possible for every small scale industry to manage this type budget. The answer is they can manage their task to outsourcing the ERP application which specially design for the SME (Small and medium Enterprise) which give better result and there are limitations also.
ENTERPRISE RESOURCE PLANNING SYSTEMS
ERP systems, as Kumar and van Hillegersberg explain, are configurable information systems packages that integrate information and information-based processes within and across functional areas in an organization. Spanning the enterprise they automate and structure an organization's business processes by providing reference models and process templates. ERP systems come as standardized software packages from firms like SAP, Baan, Oracle, PeopleSoft, and JD Edwards, allowing customers to buy them off-the-shelf and adapt them to their requirements, rather than having to develop complex software solutions. In fact, they have become a preferred method for replacing previously developed proprietary systems that now define in-house legacy systems. The power of the standard ERP solution lies in its automation of core business activities. More recently in light of e-business developments, ERP systems have been extended to include inter-organizational processes that complement today's supply chain management requirements.
From a business perspective, ERP today has expanded from simply coordinating manufacturing processes to being the integrator of enterprise-wide backend processes. ERP has also evolved technologically from a monolithic legacy implementation into flexible, tiered, client-server architecture.