Enterprise resource planning refers to an approach or process implemented with the primary goal of linking all departments and business functions of an organization into one integrated computer system that fulfills the data units of each business unit of the organization (Alexis, 2007). The Enterprise Architecture solution of ERP systems results in the convergence of an organization’s workforce, computer hardware and software, which promotes an efficient production process and delivery to increase the organization’s revenue. The approach of EA to ERP systems has a positive effect on the implementation of organizational processes and operations, because it strengthens the flow of information between different business units inside and outside the organization (O’Leary, 2000).

Enterprise resource planning refers to an approach or process implemented with the primary goal of linking all departments and business functions of an organization into one integrated computer system that fulfills the data units of each business unit of the organization (Alexis, 2007). The Enterprise Architecture solution of ERP systems results in the convergence of an organization’s workforce, computer hardware and software, which promotes an efficient production process and delivery to increase the organization’s revenue. The approach of EA to ERP systems has a positive effect on the implementation of organizational processes and operations, because it strengthens the flow of information between different business units inside and outside the organization (O’Leary, 2000).

History of Enterprise Architecture for Enterprise Resource Planning Enterprise

Resource Planning is a concept first introduced in the early 80s; it used to link finance, production and commercial logistics functions. It was mostly implemented with the sole purpose of facilitating the implementation of firm-level strategies such as purchasing, production and sales (O’Leary, 2000). So corporate companies took the opportunity to upgrade their systems. EA’s approach to ERP systems was originally implemented to automate administrative functions that directly affect the customer base. Front-end functions were later merged into ERP, such as customer relationship management and supplier relationship management. ERP II was introduced in the early 2000s and focused mainly on web-based applications that allowed the employees and external parties of the organization such as suppliers, stakeholders, and customers real-time access to systems (O’Leary, 2000).

EA components through the ERP system

Business Intelligence systems:
external work environments that use technology such as web-based applications
document management
customizable reporting platforms
Administrative portal and organizational workflow management
implementation of EA to ERP systems in the organization

Process preparation : the introduction of an ERP system requires an update of current business processes. It is essential that a company conducts an analysis of current business processes before implementing an ERP system to identify the opportunities that business process modernization can provide (Alexis, 2007).

Configuration: Includes coordination of organizational needs and ERP system design.
Customization: It is important that ERP systems can be customized to meet the changing needs of the organization. Although customization affects the time to implement an ERP system, it is important in creating a framework through which an organization can achieve a competitive advantage.

Data transfer: Refers to the transfer of data from the current system to the ERP system. Data transfer is an essential process and requires adequate attention by identifying the data to be transferred to the new EA to ERP system, setting the data transfer date, creating data models, freezing data and archiving data (O’Leary, 2000).
The role of EA in ERP in current management practices.
The impact of ERP on the management of organizations.
ERP and its contribution to electronic commerce.

ERP Risk Analysis

A number of factors have contributed to the failure of enterprise resource projects. In 1996, a pharmaceutical company called Formeyer International went bankrupt after abandoning a $55 million ERP project. HP Company also had a similar problem when the ERP project started in 200
was abandoned; the value of the project was one hundred and fifty million dollars. Similarly, in 200, Avis PLC stopped spending fifty million dollars on ERP system projects (Neil and Daniel, 2006). The failure rate is estimated at 87% and contributes to wasted dollars.

In this article, we explore five factors:

Solution Strategy Assumptions

Most organizations build overly risky models and use them as benchmarks for future projects. There are areas that need more attention and that is the formulation and implementation of fiscal policy. For example, the US military had to cancel one of its multi-billion dollar ERP projects twelve years after it was planned due to poor design.

Data analysis

The need to understand the ERP process is a major challenge in project implementation. Proper documentation of potential challenges and risks would reduce the high failure rate of ERP projects.

Information Management

Reliance on an existing implementation strategy has affected the success of ERP projects. The models provided by ERP projects are not well designed and this explains most of the failures.
Inadequate maintenance plans
The key to a successful project can be maintained with a good maintenance policy. If this factor is not well structured, it would lead to the collapse of the organizational framework.

Poor implementation

The validity of each policy is evident from the beginning. If such projects do not have the necessary capacity to be implemented in less than 2 years, their chances of survival are weak.

Every business situation can be described by its business architecture. It is worth noting that the success of Enterprise Architecture is based only on the right timing. For example, if an ERP system project is implemented and the desired goals are not visible after a year, it can be sufficiently modified with the model in EA and it reduces the risk of failure. Enterprise Architecture aims to reduce the high failure rate of ERP systems (Gordon, 2010). Enterprise architecture would benefit organizations adopting the model because it would:

  1. facilitate innovation at all levels of the project
  2. Help lower service and maintenance fees
  3. Impact and reduce failure risk.

Finally, EA to ERP is an integral part of organizational management and processes that business enterprises should not ignore. The bottom line is that ERP increases revenue and increases competitive advantage.

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