A SYNOPSIS ON

“THE ROLE OF ORGANIZATIONAL FACTORS IN REALIZING ERP BENEFITS”

UNDER THE SUPERVISION OF:

……………………….

SUBMITTED BY

NAME : ZAMEER AHMED SAIT SHAFI

ROLL NUMBER : 54111260

A dissertation submitted in partial fulfillment of the requirements of

Masters in Business Administration

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SYNOPSIS APPROVAL PROFORMA

Submitted By

Name : Zameer Ahmed Sait Shafi

Roll Number . : 541111260

Course : MBA

Specialization : Information Systems

Study Centre Code : 02527

Title of the project : The Role of Organizational Factors in Realizing ERP Benefits

Name of Organization: International Turnkey Systems

Place : Kuwait

Date of Submission : 22 November 2012

Signature of the student

APPROVAL RECORD

Approved / Not Approved (Signature of the Approving Authority)

2

Stamp

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TABLE OF CONTENTS

CONTENTS PAGE NO.

1. Aim / Objective of the Project 4

2. Introduction 5

3. Company Profile 7

4. Rationale 8

5. Research Methodology 9

6. Chapter Scheme 10

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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.

ScopeMy 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.

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2. INTRODUCTION

Today, enterprise resource planning (ERP) software systems are one the fastest

growing segments of the business–software 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 organization’s 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

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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 within-firm 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 changes—consulting, 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

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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 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

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Enterprise resource planning (ERP) is a method of using computer technology to link

various functions—such as accounting, inventory control, and human resources—

across 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 late-1990s. 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

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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.

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) Text Book

b) Magazines

c) Journals

d) Internet

SAMPLE SIZE: 15-25

SAMPLING TECHNIQUE:-

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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

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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