Issues of the Implementation of ERP in Manufacturing Companies

Abstract

An enterprise resource planning (ERP) solution is a system that combines business functions with the management and organization of data and information. Its purpose is to facilitate the flow of information between all business functions within an organization and to manage the organization’s connections with external stakeholders. Proper information management helps an organization to connect organizational units, which further encourages the process of communication and the immediate exchange of information between members of the organization, thus leading to improved organizational processes and better decision-making at all levels. It is important to be aware of the complexity of implementing an ERP solution. Without the support of top management, a proper business plan and vision, business process transformation, effective project management, user involvement, and education and training, organizations cannot reap the full benefits of such a complex system. For implementation to be successful, it is crucial to consider the critical success factors. Identifying these factors is important as it allows companies successfully implement an appropriate ERP solution. The purpose of this study is to discuss the implementation of ERP solutions in the manufacturing industry. The manufacturing industry has discovered the effectiveness of ERP, however, it also faces some challenges in its implementation.