The management at Maxima Inc. felt a need for implementing an ERP system to integrate all subsidiaries and systems for increased efficiency. They set up a team for evaluation of the systems in the market and the first option was JD Edwards which suited the existing system of Maxima whereas Oracle was the second option but the merits for Edwards weighted more comparatively to Oracle. The organization faced major issues during the implementation and post implementation phase.
The management assumed that the directors of each subsidiary would know the requirements and issues of the subsidiary and that they would convey and communicate the problems effectively so that the external consultants’ team hired to implement the project would assert to address to each issue. The major drawback in this phase was the lack of integration between the ERP modules of subsidiaries in different countries. Each module operating within the respective subsidiaries had to be connected to the head office at Singapore but this major issue was not addressed by the ERP system Oracle that the team implemented. Each subholding felt a suppressing need to limit their expenditure budgets because the purchase of new hardware and software needed to implement the new system cost them heavily. There was a lack of communication and coordination between managers and subordinates, but management failed to understand and react accordingly therefore, the implementation continued despite problems and decreasing commitment of employees to implement it
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