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Conceptual Components of ERP

The document discusses the four conceptual components of an ERP system: 1. The software component, which includes modules like finance, HR, supply chain management, and business intelligence. 2. The process flow, which illustrates how information flows between modules. 3. Addressing customer mindset and resistance to change by communicating a clear vision and goals. 4. Managing change at various levels, including user attitude through training and commitment, and business process changes required for the new system.

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Navneet Vishnoi
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522 views1 page

Conceptual Components of ERP

The document discusses the four conceptual components of an ERP system: 1. The software component, which includes modules like finance, HR, supply chain management, and business intelligence. 2. The process flow, which illustrates how information flows between modules. 3. Addressing customer mindset and resistance to change by communicating a clear vision and goals. 4. Managing change at various levels, including user attitude through training and commitment, and business process changes required for the new system.

Uploaded by

Navneet Vishnoi
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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Conceptual Components of ERP

Before we begin to implement ERP system, we should to understand the high concept or ERP model.

The ERP model is consists of four components which are implemented through a methodology. All four
components are

1. The software component is the component that is most visible part and seen as the ERP Product which
is not true. It consists of several modules such as Finance, Human resource, Supply chain management,
supplier relationship management, customer relationship, and business intelligent.

2. Process Flow is the model that illustrates the way how information flows among the different modules
within an ERP system. By creating this model makes it easier to understand how ERP work.

3. Customer mindset By implementing ERP system, the old ways for working which user understand and
comfortable with have to be changed and may lead to users’ resistance. Employee-raised facts, beliefs,
and values are good indicators of what may cause their resistance to change. For example, some users
may say that they have spent many years doing an excellence job without help from ERP system. This is
the value and belief that users have toward new ERP system. In order to lead ERP implementation to
succeed, the company needs to eliminate this kind of negative value or belief that users have toward new
system. At Pratt & Whitney Canada, top management not only provide the resource, but they also
formulated a clear vision of goals that they wished to achieve from the project. By doing so, it helped to
guide employee expectations the benefits of new system.

4. Change Management In ERP implementation, Change needs to be managed at several levels

4.1 User attitude Resistance to change is a big problem that can lead to project failure. If the company
need to success in implementing new system, users need to be understand what the new system is and
give a commitment to new system. By doing so, a company need to have a good management plan and
implementation.

4.2 Business process changes when new system is implements, the business processes are also changed
(Legacy systems are removed). Thus, a company should have a plan for these changes.

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