Analyzing the Rolls Royce Achievement in Implementing the Erp System to Overcome Cultural and Technical Obstacles
Analyzing the Rolls Royce achievement in implementing the ERP system to overcome cultural and technical obstacles
The ERP System:
What is ERP system? ERP stands for Enterprise Resource Planning, and is defined by the Business dictionary as "Accounting oriented, relational database based, multi-module but integrated, software system for identifying and planning the resource needs of an enterprise"(Business Dictionary, 2011).
ERP is a software that have the ability to connect different functional systems in an organization as a whole cohesive oasis of information to assist the management in managing the process of integration within the organization.
Rolls Royce Company Background: "Rolls-Royce is an engine manufacturing company, serving global civil aerospace, defense aerospace, marine and energy industries. The company operates in UK. It is headquartered in London, and employs 38.500 people" (Datamonitor, 2010).
Technical Obstacles: (As viewed by Yousuf. Y. et al., 2004)
Rolls-Royce had 1500 systems, which are specially designed to cover a certain department. These systems had some technical problems, which were: I. Very expensive II. Difficult to maintain and develop III. So old, and compliances with year 2000 IV. Lack of communication between other systems V. Inaccurate tracking VI. Poor capabilities in creating essential communication with stakeholders VII. And most important lacked accurate and reliable info.
(Yusuf, Y. et al. 2004)
Cultural Obstacles: (As viewed by Yousuf. Y. et al., 2004)
Rolls Royce main problem was the functionalized structure and isolated departments, which from my point of view, created lack of coordination and subsequently every department performed in a discordant pace with other unrelated departments. In addition to the familiarity with previous implemented system that reflected resistance to adopt new system as the ERP implementation project team faced. Nevertheless a structural hierarchy.
The ERP System:
What is ERP system? ERP stands for Enterprise Resource Planning, and is defined by the Business dictionary as "Accounting oriented, relational database based, multi-module but integrated, software system for identifying and planning the resource needs of an enterprise"(Business Dictionary, 2011).
ERP is a software that have the ability to connect different functional systems in an organization as a whole cohesive oasis of information to assist the management in managing the process of integration within the organization.
Rolls Royce Company Background: "Rolls-Royce is an engine manufacturing company, serving global civil aerospace, defense aerospace, marine and energy industries. The company operates in UK. It is headquartered in London, and employs 38.500 people" (Datamonitor, 2010).
Technical Obstacles: (As viewed by Yousuf. Y. et al., 2004)
Rolls-Royce had 1500 systems, which are specially designed to cover a certain department. These systems had some technical problems, which were: I. Very expensive II. Difficult to maintain and develop III. So old, and compliances with year 2000 IV. Lack of communication between other systems V. Inaccurate tracking VI. Poor capabilities in creating essential communication with stakeholders VII. And most important lacked accurate and reliable info.
(Yusuf, Y. et al. 2004)
Cultural Obstacles: (As viewed by Yousuf. Y. et al., 2004)
Rolls Royce main problem was the functionalized structure and isolated departments, which from my point of view, created lack of coordination and subsequently every department performed in a discordant pace with other unrelated departments. In addition to the familiarity with previous implemented system that reflected resistance to adopt new system as the ERP implementation project team faced. Nevertheless a structural hierarchy.
References: Business Dictionary, what is Enterprise Resource Planning.[Online] http://www.businessdictionary.com/definition/enterprise-resource-planning-ERP.html (Accessed) 21 November 2011. Child, J. (2005) Organization: contemporary principles and practice. Malden, MA: Blackwell Publishing. DATAMONITOR (2010) ‘Rolls Royce SWOT Analysis’. DATAMONITOR: Rolls-Royce Group plc. Datamonitor Plc.[Online] Available from: http://ehis.ebscohost.com.ezproxy.liv.ac.uk/eds/pdfviewer/pdfviewer?sid=0724791d-4fdd-4b45-9803-62b6cfcf0cb9%40sessionmgr104&vid=3&hid=124( Accessed: 21 November 2011) Yasuf, Y., Gunasekaran, A. & Abthorpe, M., (2004). Enterprise information systems project implementation: A case study of ERP in Rolls-Royce. International Journal of Production Economics, 87 (3), pp.251-266.