Enterprise resource planning system implementation

1. Introduction

Information system execution is a critical phase to set a system to the production environment. In this article, ERP execution procedure for BP Singapore is studied based on the essay “Enterprise Resource Planning System Implementation in a Global Subsidiary Organization: Lessons Learned” written by Sethi et al. ( 2008 ) . The company background, execution method used, drumhead of this instance, and the critical successful factor for this ERP execution procedure will be discussed in this article.

2. Company Background ( 99 words )

British Petroleum, found in 1908, is one of the largest oil and petrochemical company in United Kingdom. British Petroleum concern consist oil geographic expedition, oil refinery, chemical production and fertiliser. In 1998, BP acquired Amoco Corporation to organize a new company called BP Amoco. This company unify allow the new company become the one of the three largest integrated gas and oil companies in the universe.

BP Singapore is a subordinate of BP Amoco as the Asian-Pacific regional central office, established in 1964. The chief concern of BP Singapore provides selling, supply and trading, chemicals and fabricating functioning the Asian-Pacific clients.

3. Implementation Method used ( 198 words )

BP Singapore ‘s operation relies on a system called “Prism” . As the central offices develop a new ERP system called “International Systems Program” ( ISP ) and needs to deploy this system to BP Singapore, a undertaking squad was established to pull off the system execution and undertaking squad members need to go to a comprehensive preparation. After the members learnt the system, proving environment is set up for super users that selected from different sections, to take part into proving and assist the undertaking squad to specify range and concern procedures. Super users will besides go to a six-month preparation depends on which section they come from, and super users will response to develop up all users from their sections.

When users are ready to utilize the new system, BP Singapore decided to allow both ISP and Prism parallel running for two months. It is of import that the users can guarantee new system can carry through the existent universe state of affairs and the operation will non be interrupted as the old system is still running. Two months subsequently, new system is running smooth and all the bugs are fixed. Users are comfy to utilize the new systems and they sign off the new systems to travel unrecorded.

4. Summary of the instance ( 299 words )

In order to heighten their competitory power in the universe, British Petroleum central office in England have developed an Enterprise Resources Planning ( ERP ) system called International Systems Program ( ISP ) , and this ERP system are decided to implement to the central offices and all BP subordinates all over the universe. BP Singapore, as a subordinate of British Petroleum, are planned to implement this ERP system.

Since the new ERP system are designed by the central offices, the system development processes chiefly driven by the caput offices. BP Singapore does non involved in the system development, the new system is necessary to implement and replace the bing Prism system since this is the organisation scheme.

The ERP system is of import for the concern operation, the direction of BP Singapore hopes that the new system can profit to their operations. Using from a localised solution to a planetary solution would able to acquire information from other BP subordinates and central offices, and all the concern processes and information flows will be controlled by the ERP system. In add-on, the system provides tonss of faculties covered their concern operations comprehensively, most of the faculties that the bing Prism application will non be provided, the operations will be benefit from the excess new faculties.

As the execution procedure which described in the old subdivision, in order to do certain the execution is successful, the direction decided a four-level direction construction ( Figure 2 ) and formed a undertaking squad to pull off execution procedure. Undertaking patron kicks off the ERP undertaking, project board members responsible for undertaking early phase readying, ISP direction squad in charge of all undertaking related determinations, and the ISP undertaking squad accountable for undertaking operations. Given a good readying for system execution, and a well-structured undertaking administration theoretical account, eventually the ERP system execution returns a great success.

5. Lessons Learned – Critical Factor ( 1182 words )

The ERP execution in BP Singapore acquire a great success, users in BP Singapore can entree other subordinates and central offices by utilizing this ERP system, information flow become fast and efficient and so the concern procedure can be improved. There are several factors impacting the successful of this undertaking.

5.1 Top Management Support ( 171 words )

In order to do certain the execution of the new system can be completed successfully, in the early phase the top direction squad in BP Singapore wage excess attending and apportion excess resources to set up the new ERP system execution. The support by the top direction can drive the whole procedure of the system execution, agreement in undertaking resources, force general staff to take part the procedure, persuade staffs to accept the new system, and doing judgements and determinations. Pliskin & A ; Zarotski ( 2002 ) agreed the engagement of direction during the system execution is really of import and it will impact the concluding consequence. If member of the undertaking squad contains direction squad member, all determinations doing, sellers ‘ agreement and working relationship were maintained within the undertaking squad. Bradley ( 2008 ) besides criticized that top direction support is of import in cut downing the opposition from general staff and thrust the undertaking works more efficaciously. It is proved that the support from top direction is a critical successful factor to drive the undertaking to a successful manner.

5.2 Project Champion ( 147 words )

In the beginning of the ERP system execution procedure, top direction developed a four-level administration construction in this ERP execution, each degree of staffs in BP Singapore is able to fall in as a portion of this administration construction, and their function in this construction are besides defined in the initial phase of the execution undertaking. Furthermore, this administration construction allows the execution undertaking leaded by a strong leading. Joseph et Al. ( 2008 ) pointed out that strong leading during the execution is of import since the execution can be lead by users who have sufficient direction accomplishment. Nah et Al. ( 2001 ) besides expressed that undertaking patron is of import in oversing the full execution procedure, and concern leader can assist to decide concern struggles and trade with user opposition to the new system. It is doubtless that undertaking title-holder is one of the critical successful factors in this ERP undertaking.

5.3 Clear Scope and Project Goal ( 131 words )

Before organizing the undertaking squad, the undertaking manager and related staff had conducted several workshops, forum, and unfastened treatments to garner users ‘ sentiments, outlooks and concerns. The undertaking end, nonsubjective and range were defined based on the users ‘ demands, and hence the execution undertaking will acquire a really clear and right way. Slevin and Pinto ( 1987 ) realized that in the initial phase of the undertaking should hold a clear end and a possible way to accomplish this end. Schwalbe ( 2009 ) besides believed that a good defined range can do certain undertaking squad and all stakeholders have the same apprehension of what system the undertaking will implement and what processes the undertaking will utilize. It is incontrovertible that clear range and undertaking end is a critical success factor in the ERP undertaking.

5.4 Competence of Project Team ( 130 words )

As the undertaking squad under the administration construction is formed, all the best people coming from each section are joined to the undertaking squad. Since the undertaking squad members are recruited from different sections, their accomplishments, cognition and apprehension of their section ‘s day-to-day operation are really of import to the undertaking squad to screen out the of import functional country their represented section. In add-on, undertaking squad members coming from different sections can increase the communicating between sections, within the undertaking squad at the beginning to the interdepartmental communicating degree. Akkermans and Van Helden ( 2002 ) proved that interdepartmental communicating ab initio merely involved the undertaking squad, but eventually it extended to an unfastened communications. It is decidedly that the competency of undertaking squad should be a critical success factor in this execution undertaking.

5.5 End User Training ( 208 words )

During the execution undertaking, all undertaking squad members will take part a five hebdomads full-time comprehensive preparation in an “ISP University” . Besides ace users from each section will besides fall in a six months developing in the “ISP University” that each super user will acquire a comprehensive preparation depend on their section and functionality they will utilize, so super users can be acted as a trainer to develop their departmental users. It is doubtless that user preparation is a really of import portion to allow all the stakeholders or staff to understand the use and operations of the new ERP systems. Olson et Al. ( 2005 ) concluded that better and more comprehensive preparation is a critical factor to drive a better consequence in long term. For a transnational endeavor, each subordinate should hold different proficient accomplishments doing the new system execution more complicated, so user preparation should be comprehensive or mark oriented. More resources will be used in the comprehensive preparation and let all stakeholders can be familiar with the new system. Gargeya and Brady ( 2005 ) found that some companies assign a fixed resource on preparation so eventually caused the execution failed. As a consequence, user preparation is one of the critical factors determine the successful or failure of the system execution.

5.6 User Involvement ( 233 words )

After the undertaking squad completed the preparation, the squad will put up a testing environment for super users to prove the system and let super users to look into the functionality of ISP can map BP Singapore ‘s concern procedures. The functionality checking is really of import since the ISP is developed by BP central offices in UK that is wholly different from the bing Prism system. Carton and Adam ( 2003 ) agreed that transnational endeavor utilizing a planetary system templet to local subordinates may non bring forth the same benefit as expected, so customization is necessary. In add-on, user engagement in this testing is besides of import to happen out bugs, so BP Singapore conducts a ‘Raising Awareness ‘ award to promote staff to take part the system before the system go unrecorded. Pan et Al. ( 2008 ) point out that deficient user engagement in requirement specification and testing will do dissatisfaction of the new system and caused execution failed. Cutcher-Gershenfeld ( 2006 ) summarized Douglas McGregor ‘s theories on motive defined two types of workers. Theory X describe workers is lazy and deficiency of motive, and theory Y describe workers is ambitious and motivated by self-denial. Organization effectivity can be improved if workers behavior moves toward theory Y. In this ERP undertaking, BP Singapore usage award to actuate users to travel towards theory Y, and reduces opposition from users. Therefore, it is believed that user engagement is a critical factor in the execution undertaking.

5.7 Changeover Method ( 110 words )

After all testing and preparation are completed, the undertaking squad decides both Prism and ISP running at the same time for 2 months so that it can guarantee new system fits the environment and concern operation will non be interrupted by utilizing the bing system. System parallel running is one of the conversion methods for system execution. Bocij et Al. ( 2006 ) pointed out that parallel running is lower hazard than direct conversion, and it can bring forth assurance in the new system. However, parallel running will utilize more resources to running both systems. Finally, users have assurance to utilize the new system after utilizing for a period and system was sign-off for go unrecorded.


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