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A

SYNOPSIS ON

THE ROLE OF ORGANIZATIONAL FACTORS IN REALIZING ERP BENEFITS


UNDER THE SUPERVISION OF:

SUBMITTED BY
NAME SHAFI ROLL NUMBER : 54111260 : ZAMEER AHMED SAIT

A dissertation submitted in partial fulfillment of the requirements of Masters in Business Administration

SYNOPSIS APPROVAL PROFORMA Submitted By


Name Roll Number Course Specialization Study Centre Code Title of the project ERP Benefits Name of Organization: Place : : . : : Zameer Ahmed Sait Shafi : 541111260 MBA : Information Systems : 02527 The Role of Organizational Factors in Realizing International Turnkey Systems

Kuwait : 22 November 2012

Date of Submission

Signature of the student

APPROVAL RECORD

Approved / Not Approved Approving Authority)

(Signature of the

Stamp

TABLE OF CONTENTS
PAGE NO.

CONTENTS

1. Aim / Objective of the Project 2. Introduction 3. Company Profile 4. Rationale 5. Research Methodology 6. Chapter Scheme

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THE ROLE OF ORGANIZATIONAL FACTORS IN REALIZING ERP BENEFITS


1. AIM / OBJECTIVE AND SCOPE

Fixing the objective is like identifying the star. The objective decides where we want to go, what we want to achieve and what is our goal or destination. Every study is carried out for the achievement of certain objectives. 1. To study role of organizational factors in realizing ERP Benefits. 2. To study business benefits of ERP systems in International Turnkey Systems. 3. To study various factors that influence ERP system and implementation strategies. 4. To describe the concept of ERP and the ERP model; define key terms; explain the transition from MRP to ERP; identify the levels of ERP maturity. 5. To study ERP modules, model and Vendors.

Scope
My study will be confined to investigate theoretically find out role of organizational factors in realizing ERP benefits at International Turnkey Systems and showing effective analysis of company improvement. ERP covers a wide range of business and typically it fulfills all the business demand.

2.

INTRODUCTION

Today, enterprise resource planning (ERP) software systems are one the fastest growing segments of the businesssoftware industry. They offer a single system linking all corporate operations, including planning, manufacturing, sales, vendor relations, inventory control, human resources, and accounting. Companies around the world spent billions of dollars and expended untold man-hours installing vast ERP systems. Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems. IT managers responsible for managing their organizations ERP implementation view their ERP systems as their organizations most strategic computing platform. However, despite such strategic importance, ERP projects report an unusually high failure rate, sometimes jeopardizing the core operations of the implementing organization. This project explores the root of such high failure rate from an organizational fit of ERP perspective.

Enterprise

Resource

Planning,

ERP

is

business

management software that allows an organization to use a system of integrated applications to manage the business. ERP software integrates all facets of an operation, including Finance, Human Resources, Sales and Marketing etc. It is often argued that IT investments require active management practices for benefits realization. This applies also to enterprise resource planning (ERP)

systems. As well, benefits realization efforts are assumed to create more value than they cost. Hence, the maturity of organizations should be increased and their cultures cultivated towards more rational benefits realization practices. ERP systems are integrated, enterprise-wide, packaged software applications that impound deep knowledge of business practices accumulated from vendor implementations in many organizations. ERP systems are evolving to incorporate new technologies, such as E-commerce, data warehousing, and customer relationship management. ERP software is a semi-finished product with tables and parameters that user organizations and their implementation partners configure to their business needs. Implementation of ERP systems therefore involves both business and IT managers who work together to define new operational and managerial processes. This framework provides a meaningful benchmark of ERP benefits for comparing benefits across different firms. The framework could be used as a good communication tool and checklist for consensus-building in withinfirm discussions on benefits realization and development. Yet today, ERP systems implementations fail more often than not. They cost more than estimated, take longer than planned, and are often scaled back in midstream. It is Labor cost reduction the automation and removal of redundant processes or redesign of processes led to full time staff reduction in tasks in each business areas including, customer services, production, order fulfillment, administrative processes, purchasing, financial, training and human resources. Enterprise resource planning (ERP) systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP's scope usually implies significant changes to staff work processes and practices. Generally,

three types of services are available to help implement such changesconsulting, customization, and support. Implementation time depends on business size, number of modules, customization, the scope of process changes, and the readiness of the customer to take ownership for the project. Modular ERP systems can be implemented in stages.

3. COMPANY PROFILE
International Turnkey Systems - ITS, is a leading integrated information technology solutions and software services provider, offering superior products and services that enable organizations to keep pace with the evolving changes in today's competitive business environment, and to meet future challenges and opportunities. International Turnkey Systems (ITS) provides cutting-edge integrated information technology solutions to a wide spectrum of industries and government entities across the Middle East, the rest of Asia, as well as Africa and the world at large. The company has come a long way since its establishment back in 1981. The vision at the time was to achieve an exceptional international standing, and deliver the best IT solutions available in order to provide satisfaction for our valued customers. The customers, including leading banks, telecommunication service providers, oil companies, educational institutions, government 8

entities, and retail outlets recognize ITS as the trusted market leader for providing high-quality end-to-end solutions that enable their businesses to achieve their full potential. ITS supports its clients with an extensive and ever-expanding network of regional offices and a team of high-caliber professionals who have the passion, skills, enthusiasm and commitment to deliver the required services efficiently. ITS continually develop partnerships with prominent international companies from the industry sectors that we serve, and invest in our own research and development in order to select the best products and customize them to fit the specific requirements of our clients.

4. RATIONALE
Enterprise resource planning (ERP) is a method of using computer technology to link various functionssuch as accounting, inventory control, and human resourcesacross an entire company. ERP is intended to facilitate information sharing, business planning, and decision making on an enterprise-wide basis. ERP enjoyed a great deal of popularity among large manufacturers in the mid-to late1990s. Most early ERP systems consisted of mainframe computers and software programs that integrated the various smaller systems used in different parts of a company. When the idea was first introduced, ERP was an attractive solution for many large companies because it offered so many potential uses. For example, the same system could be used to forecast demand for a product, order the necessary raw materials, establish production schedules,

track inventory, allocate costs, and project key financial measures. ERP "acts as a planning backbone for a company's core business processes. These above reasons that are why, I am choosing particular topic for my study. The analysis is expected to contribute the following: Contribute ideas and suggestions to individuals to related with ERP benefits of the organization and thereby improve performance levels. Provide an organizational development tool to companies in the relatively new field of ERP based on empirical research data. Employees were able to get the system running within a very short period They negotiated for a fixed price implementation costs and payments terms based on strict predefined milestones.

5.

RESEARCH METHODOLOGY

Research methodology in a way is a written game plan for conducting research. Research methodology has many dimensions. It includes not only the research methods but also considers the logic behind the methods used in the context of the study and complains why only a particular method of technique has been used. The basic task of research is to generate accurate information for use in decision making. Research can be defined as the systematic and objective process of gathering, recording and analyzing data for aid in making business decisions.

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RESEARCH DESIGN:- The research design used in this project was both Descriptive and exploratory. DATA COLLECTION METHODS: The data will be collected using both by primary data collection methods as well as secondary sources. PRIMARY DATA: Most of the information will be gathered through primary sources. The methods that will be used to collect primary data are: a) Questionnaire b) Interview SECONDARY DATA: Secondary data that will be used are web sites and published materials related to ERP as well as any relevant information on ERP benefits realization. The secondary data will be collected through: a) b) c) d) Text Book Magazines Journals Internet

SAMPLE SIZE: 15-25 SAMPLING TECHNIQUE:The selection of respondents was done on the basis of convenience sampling (Non- Probability). STASTICAL TOOLS: The tools used in this study were MS-EXCEL, MS-WORD. MS-EXCEL was used to prepare pie- charts and graphs. MS-WORD was used to prepare or write the whole project report. REPORT WRITING AND PRESENTATION

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Report Encompasses Charts, diagrams Area of Study: Realizing ERP Benefits

6. CHAPTER SCHEME
Detailed/final project report will include the following chapters; 1. Introduction 2. Objective and scope of study 3. Methodology (Details of methodology used in studying and collecting the data and issue will be described) 4. Descriptive work (Descriptive work on the topic, this chapter will include analysis and interpretation of data tabulation and categorization) 5. Study report (Study report of other researcher will be observed and analyzed) 6. Conclusion 7. Findings 8. Limitations 9. Recommendation 10. Bibliography

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