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Student ID        10
ISY205 Enterprise Systems
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Table of Contents
1.    Executive Summary    3
2.    Introduction    3
3.    Adopting ERP Systems in Organization    4
3.1.    Technology Acceptance Model (TAM)    4
3.2.    Role of External Factors    5
4. Contribution of SAP to Organization Performance    6
5. Measuring the Performance of SAP ERP    7
6. Organizational Change Management Consideration    8
7. Conclusions    11
8. References    12
1. Executive Summary
ERP system can integrate various subsystems into one colossal framework with centralized database. It upgrades efficiency and also provides more advantages in terms of revenue to organizations. The effective implementation of the Enterprise Resource Planning (ERP) can provide various advantages for the organization. But, if implementation of ERP fails by any reason, it can have negative impact on the business organization as well as ERP vendor who provides this. Hence, by considering these variables that may influence the accomplishment of this venture is considered as a need for all the parties that are involved with this undertaking. In this paper, we are discussing about various principal drivers that plays important in implementing SAP in Automobile Manufacturing organization Ford (Almgren, K. & Bach, 2014).
2. Introduction
Enterprise resource planning framework i.e ERP is intended to integrate all frameworks working in various departments of the organization. It is one coordinated program that provides centralized database in a way that can allow other business units to uninhibitedly share data and to communicate with other users. In an association, improvement of data and assets utilized by various business units could be accomplished just if frameworks are coordinated (Lipaj, D. & Davidaviciene, 2013).
ERP (Enterprise Resource Planning) is centralized system which is developed to share information over the association for minimizing the redundant business processes. These frameworks are meant to streamline all the processes of the organization. Modern ERP systems like SAP, Oracle and so on are developed by integrating the best industry practices. In this competitive environment, business strategy helps to determine the success of the business and also helps to govern the business survival. Therefore, ERP is a packaged business information system that helps the organization to use productive use of resources like organization’s materials, Supply chain SCM, HR, finance, and so forth. by providing integrating and centralized solution for processing information needs (Sabaawi, 2015).
ERP framework is considered to be an integrated software that can be used for manufacturing, order entry, general ledger, account payable and receivable, procurement, warehouse, supply chain and HR module for Ford organization. All the modules of ERP will have the ability to interface according to the requirement in Ford with user friendly customization (Soliman, M. and Karia, 2015). The main objective of the paper is to discuss various factors that are responsible for adopting enterprise systems in an organization and how this enterprise systems benefits the organization and what are methods to measure these contribution of enterprise system in the organization. Here, we are taking the case of implementation of SAP ERP in Automobile manufacturing industry Fords.
3. Adopting ERP Systems in Organization
Embracing an ERP framework in Ford is the initial step for the implementation process of ERP system that can help in increasing productivity, enhancing performance and also helps in achieving the competitive advantages. Adoption of ERP system is influenced by some drivers which can be – technology, operation, infrastructure, capacity, and performance (Abdelghaffar, 2012).
3.1. Technology Acceptance Model (TAM)
There are a few hypothetical models that can help in finding user acknowledgment of the ERP system. These incorporate the technology acceptance, self-adequacy , task-innovation and planned strategies. The technology acceptance model i.e TAM is a broadly defined system that can help in adoption of enterprise system by user. It can help to clarify the complex implementation as well as problem in its adoption by stakeholders as well as users. This model mainly depends on the theory of reasoned action i.e TRA. According to TRA theory, the behavioral intension of a person to utilize a framework is controlled by two convictions, ie perceived usefulness(PU) and perceived ease of use (PEOU).
Perceived usefulness can be defined as "how much an individual accepts that utilizing a specific framework would upgrade his or her activity performance". It is basically the result of job performance which is improved and the user motivation. Perceived usefulness is connected with how the system is utilized. On the other hand, perceived ease of use is characterized as "how much an individual accepts that utilizing the framework will be free of any additional effort". According to the model, perceived usefulness is affected by perceived ease of use on the grounds that, if the system is ease to use, it can be more efficient in terms of data handling. Perceived ease of use is mainly adopted by users (Rajan, C., A. & Baral, 2015).
3.2. Role of External Factors
The TAM model helps to find that the external factors are relied upon to impact acceptance of technology behavior in indirectly way by influencing convictions, frames of mind, or expectations. The external factors that mainly influence the adoption of SAP are organizational context, individual skills. Various external factors that can influence the adoption of SAP ERP are as following:
1. System Self-viability - Self-viability can be measured by user's confidence in using new SAP ERP system. It is the individuals' decisions of their capacities for organizing the actions that are required to achieve assigned kinds of performance. It is about judging an individual's ability to utilize SAP ERP and is a significant...