Background of the research
The IT security in the business organization has been an important sector in the market. The security and privacy of the data and information in the organization has been first priority for the company.
This report discusses about the deficiency in the modern software including ERP. The limitations of the ERP software has been depicted in the report.
This report outlines the basic properties of the ERP and the limitations implemented in the software for its use in various conditions. There are some recommendation provided in the report for mitigating the issues in the use of the ERP system in the company.
IT security concerns to various attacks in the network server of the company. The attacks can be performed by the hackers in order to breach into the personal and legal information of the company (1). This includes various consequences in the privacy of the private data and information of the company. The ERP system of any company helps in maintain the data and information of the company in the market. Different big and small business organization have been using the ERP systems in the market (2). The use of the ERP system has been popular in the market that helps in mitigating the security and data storage problems in the company.
There are various advantages of the ERP system in the company. The ERP system helps in channelizing the data and information of the company in a proper way that helps in maintaining transparency in the workflow of the employees (3). The use of the ERP system has helped in prioritized the workflow of various departments in the company. On the other hand, there are various failures in the ERP software system of any company in the market. The major limitation of the ERP system is the security of the data and information (4). The time consumed for implementing the ERP system in the organization becomes long for fully functional system. The security of data in the company has been a great challenge in this field. The security analyst has been continuously analyzing the security protocol of the network protecting clients from hackers. The use of the ERP system have helped in centralizing the data and information of the company. Therefore, it has become easy for the hackers to attack in the centralized data server for breach all the data and information (5). The monitoring of the ERP system in the company.
Project Objectives
This project focuses on the deficiencies of the ERP software related to the security issues over the internet. There are various limitation and deficiency of the ERP system discussed in the project. This helps in identifying and resolving the limitation of the ERP software system. The safety measures of the mitigating the challenges in the ERP software has been procured in the project. Different cases of the failures of the ERP system has been discussed in the project.
The development of the ERP has its own importance in grasping the deficiencies of product. The ERP is a software that helps in facilitating the flow of the data and information in the enterprise. The ERP helps in facilitating the information across different units of the organization. ERP software helps in decision-making process in the enterprise (6). The ERP system provides the backbone of the enterprise in the market. The fundamental storage policy of the company is maintained by the ERP system of the company. It helps in operating the strategies of the modular applications in the business organization (7). Therefore, it plays an imports role in the development of the company in the market. A primary benefit of the ERP system is to access the reliable and integrated system. The competition in the market regarding the ERP system has been improvising the latest technology for storing the data and information in the company.
Various vendors are providing the ERP software services to different companies in the market. This software are discussed below:
SAP AG
It is the leading ERP package vendor in the market having 32% share in 1999. It was founded by German in 1972 for integrating business application software in the manufacturing process of the company (8). The use of the SAP AG has been increasing in the market with the implementation of the features in the system. This has helped in maintaining ERP software market. Different companies started using this ERP software system in their business organization. The data storage of the company becomes easy for managers of the company; the security of the data was increased from the older versions (9). On the other hand, the limitations of the SAP AG has been identified in the market. The security protocols of the ERP software is not strong. The export and import system of the company have caused challenges for the security of the data and information of the employees of the company.
Enterprise Resource Planning (ERP)
Oracle
Oracle is the second largest software company in the world. It has able to build solid enterprise applications in the business. The use of the SAP software in the market has serve over 5000 customers in 140 countries (10). The company has been a leader in the use of the ERP solutions in maintaining the database of the company in the market. The use of the ERP software has helped in providing e-commerce platform for the stoners in the market. The online business of the company have helped in providing online cloud services to the customers. It has been able to reinforcing the ERL software packages to business-to-business solutions in the market.
The challenging and complex requirements of the ERP system for the sophisticated users in the market has been emerging when there is no one in the project. The use of the ERP implementation methodology has paid off services provided to the customers (11). The attacks over the internet have created challenges in the ERP software packages. The use of the ERP software packages has helped in centralizing all the data and information of the company in the single unit that helps in enhancing access of the data and information in the company (12). Therefore, it has helped hackers in accessing the data and information of the employees in the company. The testing of the system lacks in the security protocols that invites the virus and malwares to enter into the ERP software of the company leading to damaging the system.
There have been various challenges in the implementation of the ERP software in company. These challenges are described below:
Selection problem
The ability of the managers to choose the size, shape and scope of the system helps in providing strategies for the development of the company. The wrong selection of the software and system might damage the growth of the company in the market (13). The functional requirements of the company in the market has been considered in various terms of priority. Different companies consider tis challenges and decides how to tackle this problem. Therefore, without concluding the problem in the ERP software, it becomes tough to resolve the challenges in the company. The ERP selection needs to be taken under serious consideration of the ERP system (14). This impact the company for a long period on time in the future.
The implementation of the successful ERP software packages in the company has been a critical task for the operation management team of the company. The implementation of ERP software packages in the company faces different technical issues (15). There is no technical expert who can handle any discrepancy in the ERP system. Therefore, the technical issues can be raised in the company the use of the technical background in the company helps in maintaining and monitoring the ERP system of the company. The technical issues includes different networking problems in the ERP implementation. The gap in the security layer of the ERP software packages invites viruses and malwares into the software that causes damage to the system (16). The use of the cloud computing in the ERP system have initialized online storage of the data and information. The use of the cloud computing in the ERP system have created different challenges related to the technical issues in the ERP software. The security of the data and information over the internet has been a concerning issue in the market. The use of the IT security systems in the company have helped in maintaining the security measures in the company. The technical issues in the work environment of the company have created challenges in the ERP software. The applications and software failure in the ERP system have caused technical fault.
ERP Software vendors
The quality of the data has been a symptomatic issue that happens during the implementation of the ERP system. The transfer of legal and official data in the excel spreadsheet, manual records and old applications have created issues in the quality of data (17). During the implementation of the ERP system in the company, the use of the correct data form the excel spreadsheet and other manually written data is necessary to feed in the database of the company. The change in the quality of the data and information in the ERP system causes challenges in its implementation. The time allocated for the implementation in the ERP system have to be increased that causes delay in completing the project within deadline. The old data and information of the company might be lost or damaged due to improper care of the data. This might causes huge loss to the company in the market.
The implementation of the ERP software causes many changes in the traditional business model of the company the daily practices of the employees in the company get changes with the implementation of the ERP software (18). The level of responsibility of employees might be increased to adapt with the new system and it becomes difficult to fix the human errors. There are many new approaches for reporting of data and information in the company that changes due to the implementation of the ERP. The managerial roles and principles get affected with the implementation of new ERP system in the company. The main challenge is to look for big opportunity and bring new ideas at the same time.
The shifting of the mind and views of the employees form the traditional software to new ERP software is a critical step in the company (19). The traditional system had various features and working style that is different from the new software system. Therefore, the mindset of the employees in the company have to be changed according ti the change. The mind shift of the employees have t be prioritized first for the operational manager in the company. The ERP project manager gave to look for the best cases in shifting the mind of the employees from traditional software system to new ERP system. The applications and software failure in the ERP system have caused technical fault. Therefore, it becomes difficult for the manager to manage the mind of the employees in the company (20). The technical issues in the ERP system arises that is not properly handled by the employees of the company as they least idea about the new ERP software.
Purpose of the cyber-attacks
The use of the IT security systems in the company have helped in maintaining the security measures in the company. It is required to create interest in the employees of the company regarding the new software. It is required to inform all the employees about the salient features of the new software system. The feedback of the employees after the training process is required that helps in communicating with the employees regarding new ERP systems (21). Organizing training sessions with the employees helps in educating the employees regarding the new systems in the company. The security of the data and information over the internet has been a concerning issue in the market. The technical issues in the work environment of the company have created challenges in the ERP software.
This section of the report focuses on the grave mistakes that have been made by the application of the ERP processes in a business process. The major implications included in the problems of wrong ERP adoption includes charging of lawsuits to businesses for failed ERP solutions or failure in customer management which eventually leads to the loss of business. This section includes a list of the various mistakes that were made by the big-shot companies who are in charge of business globally.
When Vodafone, a telecomm provider of the British country, implemented their customer management system in a new platform of the Siebel, many problems were faced. The problem that was associated included flaws in integrations of the customer bases where many accounts were not updated (22). This process was the cause of various customers to lose track of their account payment, as the funds to be added were not reflected in their accounts.
This problem was the cause for the company to be penalized for an amount of £4.6 million. In addition, the problems were also associated with private litigations aimed to other companies as well.
The students of the Washington Community College are associated with providing a part of their tuition fees for the betterment of their college infrastructure. This includes adoption of the PeopleSoft ERP system that was supposed to be operational by the year of 2012. Due to the presence of delays, the students were facing difficulties with their fees (23). The identified causes for their delay included the presence of different prospects in business in different campuses of the college. As the prospects needed to be complied with the business standards, the adoption of the processes was being delayed.
Challenges in implementing ERP
Moreover, the third party vendor, which was supposed to install the PeopleSoft ERP solution, went out of business due to bankruptcy. This led to their assets being captured by another company, named the HTC. In addition, they also sued the college for 13 million $ from the community college due to the presence of the internal problems in the college. As the company was already facing a dispute about their internal operations not complying with each other, the failed rollout of ERP process was a grave threat.
The Woolworth Company of Australia faced a grave threat accounting to data related issues. Their main involvement included upgrading their existent solutions of the traditional process of data collection to advanced SAP enabled in-house software (24). Due to such transitions, the main problem that was faced was the lack of generation of the main business reports like the accounting reports or the sales report.
The problem that accounted to this failure was the result of less business transparency that was required in the new system integrations. In addition, the accounting activities of the day were also not being added to the business process, which was another cause for ERP problems. Moreover, the senior staffs were not associated to the business processes anymore and this was an additional reason for the lack of information in the new system.
Another report of ERP failure includes the Target Company, which was supposed to be made gully functional in the year of 2013. As implications arise due to importing previous data from the business process to a newly made system, the challenges are also faced in case of new program development.
During the launching of the company, the supply chain was collapsed which was the root cause of business failure (25). Troubleshooters and experts tracked the reason behind this fault, which led to the conclusion that the fault of the ERP system was due to the lack of previous data in the system. The items associated were tagged with dimensionally incorrect variables including the prices and manufacturers of the products. In addition, the data entry workers were responsible for making changes to the system (26). These workers had very little knowledge about a new ERP system, which was another cause for problems in the associated company. From the report made about these issues, the amount of data that was included here was supposedly 30% correct.
Some cases of data analysis have been reported where newly made ERP systems are been tested with previous data records from their archives. This is mainly done to remove the presence of any errors in the system. However, it is seen that the newly made systems are not successfully made as the security processes that are to be included here is very less. This increases the problems with those previous data and makes them vulnerable to outside threats.
Selection problem
In the year 2016, Chris Vickery analyzed an exposed database, which belonged to the Pacific Gas and Electric Company. The associated data set included 47,000 computers, servers, other devices and virtual machines (27). These data was completely available in the internet and was left unchecked. This was due to the development of an ERP based system by the use of third-party company software. These companies were given the task to achieve ERP integrations, which resulted in a huge amount of loss for the company.
A failed project is supposed to reduce the operations of multimillion-dollar Company in the market. The company was supposed to implement a SAP R/3 ERP software project for their product management. The failure to make the project a success caused operational problem in the season of Halloween for the year 1999. In addition, the investors of Wall Street were also traumatized due to their investments.
The impact of the failed project led to various problems in SAP ERP, Siebel CRM and Manugistics supply chain applications (28). This resulted in the company to make a loss of a 100 million$ sales. In addition, this also resulted in the company to lose their stock ratio by a percentage of 8.
Because of constrained ERP learning, ability and poor organization administration aptitudes, none of the organization directors could practice successful undertaking administration of ERP usage. They concurred that an inability to design, lead, oversee and screen the undertaking was a center factor that brought about their usage disappointment, in light of the fact that the ERP framework was complex, and undertaking groups were required to work together with top administration, unique offices, clients and specialists amid execution process (29). The ERP organization was considered by the organization troughs to challenge and requesting, as it included overseeing frameworks, individuals and additionally re-outlining business forms.
For Beta, Gamma and Delta, the over-tight and doubtful task time plan what’s more, inadequate human asset depleted the undertaking colleagues and clients in adapting with the ERP usage. Exercises of the distinctive stages could not be led completely. The technical issues includes different networking problems in the ERP implementation. The gap in the security layer of the ERP software packages invites viruses and malwares into the software that causes damage to the system. Clients could not comprehend the new framework or adjust to the new business process inside the over-tight plan. None of the undertaking administrators in these examinations could practice powerful organization administration control, particularly in overseeing specialists, and detailing usage issues to top administration at whatever point fundamental (30). It is imperative for the organization director to adequately deal with the experts, for instance, in assessing their correspondence and preparing execution, when directing BPR, and when testing framework execution. In fact, in this investigation, the majority of the organizations’ undertaking colleagues needed ERP encounter. However, the external advisors were not ready to give proficient exhortation thus drove a fizzled execution. Top administration and task chiefs need to guarantee sufficient knowledge related to the ERP implementation.
The interrelationship between the elements ought to get more consideration in future research. Earlier research has shown that basic achievement variables can influence each other in a strengthening way. It would be advantageous in future research on basic disappointment components to consider how certain variables influence each other in a strengthening way. It can be recommended that poor ERP specialist adequacy and poor task administration viability could be the reasons for low quality BPR, which adds to clients’ protection from change. In future research thinks about, it is proposed that scientists research the sorts of expert counsel and learning that can be given by ERP advisors in particular periods of the ERP framework life cycle.
Conclusion
It can be concluded that the use of the ERP software in the business organization has helped in maintaining the storage of data and information of the company. There are various advantages of the ERP software discussed in the project. The limitation of the ERP software has been clearly described in the report the training session of the employees is required for educating them regarding the new ERP system in the company. . Troubleshooters and experts tracked the reason behind this fault, which led to the conclusion that the fault of the ERP system was due to the lack of previous data in the system. The use of the ERP system have created many deficiencies in the operational management of the company. There are various cases of the failures of the ERP system discussed in the report. The items associated were tagged with dimensionally incorrect variables including the prices and manufacturers of the products. The recommendation has been provided at the end of the report that have helped in resolving the challenges.
References
- Madapusi A, D’Souza D. The influence of ERP system implementation on the operational performance of an organization. International Journal of Information Management. 2012 Feb 29;32(1):24-34.
- Lin R, Zhao X, Wei G. Models for selecting an ERP system with hesitant fuzzy linguistic information. Journal of Intelligent & Fuzzy Systems. 2014 Jan 1;26(5):2155-65.
- Kwak YH, Park J, Chung BY, Ghosh S. Understanding end-users’ acceptance of enterprise resource planning (ERP) system in project-based sectors. IEEE Transactions on Engineering Management. 2012 May;59(2):266-77.
- Kilic HS, Zaim S, Delen D. Selecting “The Best” ERP system for SMEs using a combination of ANP and PROMETHEE methods. Expert Systems with Applications. 2015 Apr 1;42(5):2343-52.
- Hasibuan ZA, Dantes GR. Priority of key success factors (KSFS) on enterprise resource planning (ERP) system implementation life cycle. Journal of Enterprise Resource Planning Studies. 2012 Jan 1;2012:1.
- Zach O, Erik Munkvold B. Identifying reasons for ERP system customization in SMEs: a multiple case study. Journal of Enterprise Information Management. 2012 Sep 21;25(5):462-78.
- Nwankpa J, Roumani Y. Understanding the link between organizational learning capability and ERP system usage: An empirical examination. Computers in Human Behavior. 2014 Apr 30;33:224-34.
- Jeng DJ, Dunk N. Knowledge management enablers and knowledge creation in ERP system success. International Journal of Electronic Business Management. 2013 Mar 1;11(1):49.
- Nwankpa JK. ERP system usage and benefit: A model of antecedents and outcomes. Computers in Human Behavior. 2015 Apr 30;45:335-44.
- Zeng Y, Skibniewski MJ. Risk assessment for enterprise resource planning (ERP) system implementations: a fault tree analysis approach. Enterprise Information Systems. 2013 Aug 1;7(3):332-53.
- Chou, H.W., Lin, Y.H., Lu, H.S., Chang, H.H. and Chou, S.B., 2014. Knowledge sharing and ERP system usage in post-implementation stage. Computers in Human Behavior, 33, pp.16-22.
- Kilic HS, Zaim S, Delen D. Development of a hybrid methodology for ERP system selection: The case of Turkish Airlines. Decision Support Systems. 2014 Oct 31;66:82-92.
- Zach O, Munkvold BE, Olsen DH. ERP system implementation in SMEs: exploring the influences of the SME context. Enterprise Information Systems. 2014 Mar 4;8(2):309-35.
- Saleh Shatat A, Mohamed Udin Z. The relationship between ERP system and supply chain management performance in Malaysian manufacturing companies. Journal of Enterprise Information Management. 2012 Oct 12;25(6):576-604.
- Seo G. Challenges in implementing enterprise resource planning (ERP) system in large organizations: similarities and differences between corporate and university environment (Doctoral dissertation, Massachusetts Institute of Technology).
- Asl MB, Khalilzadeh A, Youshanlouei HR, Mood MM. Identifying and ranking the effective factors on selecting Enterprise Resource Planning (ERP) system using the combined Delphi and Shannon Entropy approach. Procedia-Social and Behavioral Sciences. 2012 Jan 1;41:513-20.
- Ling Keong M, Ramayah T, Kurnia S, May Chiun L. Explaining intention to use an enterprise resource planning (ERP) system: an extension of the UTAUT model. Business Strategy Series. 2012 Jun 29;13(4):173-80.
- Chen HJ, Yan Huang S, Chiu AA, Pai FC. The ERP system impact on the role of accountants. Industrial Management & Data Systems. 2012 Jan 27;112(1):83-101.
- Matende S, Ogao P. Enterprise resource planning (ERP) system implementation: a case for user participation. Procedia Technology. 2013 Jan 1;9:518-26.
- Rajan CA, Baral R. Adoption of ERP system: An empirical study of factors influencing the usage of ERP and its impact on end user. IIMB Management Review. 2015 Jun 30;27(2):105-17.
- Mijac M, Picek R, Stapic Z. Cloud ERP system customization challenges. InCentral European Conference on Information and Intelligent Systems 2013 Jan 1 (p. 132). Faculty of Organization and Informatics Varazdin.
- Leyh C. Critical success factors for ERP system implementation projects: A literature review. Advances in Enterprise Information Systems II. 2012 Jun 7:45-56.
- Maas JB, Fenema PC, Soeters J. ERP system usage: the role of control and empowerment. New Technology, Work and Employment. 2014 Mar 1;29(1):88-103.
- Amid A, Moalagh M, Ravasan AZ. Identification and classification of ERP critical failure factors in Iranian industries. Information Systems. 2012 May 31;37(3):227-37.
- Efe B. An integrated fuzzy multi criteria group decision making approach for ERP system selection. Applied Soft Computing. 2016 Jan 31;38:106-17.
- Shen YC, Chen PS, Wang CH. A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach. Computers in Industry. 2016 Jan 31;75:127-39.
- Tsai WH, Lee PL, Shen YS, Lin HL. A comprehensive study of the relationship between enterprise resource planning selection criteria and enterprise resource planning system success. Information & Management. 2012 Jan 31;49(1):36-46.
- Chang, S.I., Yen, D.C., Chang, I.C. and Jan, D., 2014. Internal control framework for a compliant ERP system. Information & Management, 51(2), pp.187-205.
- Ram J, Corkindale D, Wu ML. Examining the role of system quality in ERP projects. Industrial Management & Data Systems. 2013 Mar 15;113(3):350-66.
- Jeong HY. The QoS-based MCDM system for SaaS ERP applications with Social Network. The Journal of Supercomputing. 2013 Nov 1;66(2):614-32.
Order an Essay Now & Get These Features For Free:
Turnitin Report
Formatting
Title Page
Citation
Outline
