SAP ERP software is an enterprise resource planning that Border States Industries Inc used to transform its operations through improved management and information sharing. However, despite the positive outcomes of implementing the SAP ERP software, it was not easy to develop a solution to support the organization expansion to support the business core processes. The new SAP ERP software helped BSE to integrate its sales and distribution, materials management, human resources management and financial controlling. The process to implement the SAP ERP software was complex, but it was made easier for the organization by the great support from the management. The close involvement of the management with the IBM and SAP consulting team to implement the SAP ERP software made it easier and reduced consultation time required in the implementation plan (Bingi et al., 1999).
The high involvement of the management and dedication of most of the management time to the implementation system negatively impacted the organization day to day operations. Further, the decision by BSE to customize the SAP ERP software to enable the new system to directly integrate with other vendors also complicated the implementation process. However, the integration of the new SAP ERP software with other vendors was instrumental to the organization tax management, promote data exchange with the suppliers as well as direct communication with the customers through fax which significantly improved the organization operation efficiency. The failure of BSE to adopt the best practices and business processes that were originally designed for the SAP ERP software increased the cost of implementation from 6 million dollars to 9 million dollars and also took longer time than the time that was previously anticipated. Time management was a significant challenge that faced BSE which could have been avoided if the organization implemented the best practices established by the SAP ERP software developers and also could have been more cost effective (Bingi et al., 1999). The quality training of the BSE employees was instrumental in quick integration and adaptation of the SAP ERP software in the organization which reduced implementation complexities within the organization departments.
How much did the new system solution transform the business?
The new SAP ERP software improved BSE management of its expanding business and new business lines. The SAP ERP software improved the organization coordination of different business processes which was instrumental to the success of the organization by improving the organization ability to manage its tax for different municipalities it operated which improved the organization compliance to tax requirements using the Taxware system which was integrated into the SAP ERP software. The SAP ERP software improved BSE management of its suppliers through the Innovis system which improved information exchange between the suppliers and the organization on payment transactions while the TOPCALL system which was incorporated in the SAP ERP software improved the organization communication with customers and vendors (Xu, 2017).
The SAP ERP software made organization processes easy and saved a lot of time at the same time reducing previous complexities that BSE experienced in processing credit card payments which improved customer satisfaction. The Vistex software reduced BSE fulfillment time for SPA claims from 15 to 30 days to 72 hours and the transaction process for the customers times was reduced by 63% which significantly improved the organization efficiency (Xu, 2017). The SAP ERP software improved the ability of BSE to monitor its items across different states and organizations that were acquired by BSE. Most of the organization vendor invoices were received electronically using the SAP ERP software system which improved financial accountability of the organization. Despite the rise in BSE information technology cost by 3 million dollars per year the organization has increased its sales which makes the SAP ERP software a good investment for Border States Industries Inc.
Bingi, P., Sharma, M. K., & Godla, J. K. (1999). Critical issues are affecting an ERP implementation. IS Management, 16(3), 7-14.
Xu, H. (2017). What SMEs need to focus on in order to obtain benefits of ERP systems?.
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