IS3221 Enterprise Resource planning | Management Team of Maxima Inc
Maxima Inc: Enterprise Resource Planning Project Failure
2. As a consultant hired by this company to turnaround the situation, identify all challenges and provide a list of strategies that you would recommend your client to prevent information system failure.
Answer:
The top management team of Maxima Inc. did not make the right decision in the choice and selection of ERP packages. Firstly, the company decided to implement the use Oracle weighted average method instead of FIFO for costing. FIFO had served the firm well over the past years and it was only after implementation of the ERP thinking that it would create a competitive advantage only to come and realize later that
FIFO was much better than the weighted method thus calling for changes.
According to Barrons et al (2018) despite the fact that RMA module was also important for Maxima Inc. as it would help the firm to track the information on the returned goods. It became cumbersome for the users and customers since it required them to create a line for each of the returned goods that called for greater efforts in data input in addition to the fact that they were prone to error. This arose to the fact that the firm was not willing to change some of the process as they were considered competitive advantage for the firm. The workarounds that were available were tedious and increased the time needed for processing (Aremu et al. 2018, p.245)
The problems that arose between the users of the software and the company were also due to poor SC consultants. In actual sense, the problem was due to poor selectin of the consultants. The firm had only one-experienced consultants and the rest were just fresh graduates. The continuous replacement of the consultants also propelled the problem since each new consultant would come up with a new idea thus leading to the discontinuation of the project. Since the consultants had no knowledge about the distribution process, they ended up lacking the confidence to tackle the questions asked by the users hence increasing their problems (Hepner et al. 2013, p.321)
Another mistake that was done by the management team is failure to consult the end users and the management teams at the subsidiaries. The management did not take into consulting thus during the implementation, it was shocked to find out that some of the subsidiaries had varied processes since they ran independently. The respective leaders of various sub holdings had not been informed or consulted concerning the units of their firms (Laosethakul et al. 2016, p.218)
In addition to this, the end users were not consulted so that they could give ideas on the phases of design. Conflict arose between the users and the management team since they had not been consulted and were only involved during the testing phase.
References
Aremu, A. Y., Shahzad, A. and Hassan, S. (2018) ‘Determinants of Enterprise Resource Planning Adoption on Organizations’ Performance among Medium Enterprises’, LogForum, 14(2), pp. 245–255. doi: 10.17270/J.LOG.2018.277.
Hepner, M. Mh. ed. and Dickson, W. Wd. ed. (2013) ‘The Value of ERP Curriculum Integration: Perspectives from the Research’, Journal of Information Systems Education, 24(4), pp. 309–326. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=eft&AN=96738980&site=ehost-live (Accessed: 20 October 2018).
Barrons, K. P. . and Knoll, M. A. (Luttenton)1 (2018) ‘Flipped Instructional Technology: Developing MIS Competencies Applying Enterprise Resource Planning Software’, Journal of Higher Education Theory & Practice, 18(1), pp. 23–31. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=eft&AN=130424445&site=ehost-live (Accessed: 20 October 2018).
Laosethakul, K., Tarasovich, B. M. and Boyer, B. (2016) ‘Determining the Most Effective Pedagogical Method of Teaching SAP Enterprise Resource Planning Exercises in an Introductory Financial Accounting Course’, Journal of the Academy of Business Education, 17, pp. 209–219. Available at: https://search.ebscohost.com/login.aspx?direct=true&db=buh&AN=120333179&site=ehost-live (Accessed: 20 October 2018).
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