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1 GM Locomotive says the problem wasnt with the ERP Software Then what did cause the major failure of the ERP system Explain ERP stands for Enterprise Resource Planning It is a single computer system that attempts to integrate all the functions and departments across a company This allows the system to have an overall view of the entire company enabling all the different departments to align their particular needs with that of the goals of the company Computerworld 2005 There were many reasons for the failure of GM Locomotives ERP system Firstly the software did not reflect the complexity of the distribution process That is the locomotive units software wasnt configured well enough to match internal business processes Computerworld 2002 p 12 The SAP R3 Software also adopted by Farmland Industries and Colgate-Palmolive OBrien 2004 p 195 368 performs quite well in the right circumstances The problem noticed is that there was either or both insufficient time and input spent on modifying the technology to suit the direct requirements of the locomotive unit or there was a lack of expertise when modifying the software to fully integrate all the components required by GM GM like many other companies underestimated the complexity of planning and development needed to prepare for the new system It appears that GM introduced the ERP system and expected the results to be immediate without considering the changes required Through implementing the system to take over many operations at once GM were doomed The conversion process was also rapid and it appears that the expectations of the software were unrealistic Further to the expectations top managements view was that they were anticipating results in an unrealistic time-frame According to a Meta Group Study it takes an average 31 months to see any benefits of the implementation of ERP systems Computerworld 2005 It also becomes apparent that the Locomotive Group is outsourcing functions relating to the
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