Implementation issues
Implementing an ERP system in an organization is an very complicated process. It spends large numbers of systematic plannings, expert consultation and well structured approach. Because its comprehensive scope, it may even take years to implement in a large organization. Implementing an ERP system will finally necessitate important changes on personnel and work processes. While it may seem practical for an inner IT administration to head the project, it is commonly suggested that special ERP implementation experts be consulted, since they are specially trained in deploying these sorts of systems.
Organizations usually use ERP vendors or consulting companies to implement their customized ERP system. There are three kinds of professional services that are offered when implementing an ERP system, they are Consulting, Customization and Support.
The ERP implementation process goes through five key steps which are Structured Planning, Process Assessment, Data Compilation & Cleanup, Education & Testing and Usage & Evaluation.
Cost
The total cost of ERP ownership includes：
Costs of Software:
The cost of packaged ERP software depends on the range of implementation, complexity of software and ERP vendors. ERP software that include the integration with outer business entities generally costs more.
Costs of Hardware:
Implementation of ERP systems asks purchase of new computer hardware, systems software, network equipment and security software.
Costs of Professional Services:
Customization The big chunk of costs of Professional Services is customization. it is the customization of ERP software that makes an ERP a success or a failure.
Integration ERP systems won't proof its full potentials unless they are suitably integrated with other enterprise software application
Data Conversion The cost of data conversion depends on the format and the media that store the historical data. .
Testing ERP systems are thoroughly tested before they go into production. ERP testing involves unit testing, component testing, regression testing, performance testing and user acceptance testing.
Training ERP training is expensive because workers almost invariably have to learn a new set of processes of doing their daily tasks besides learning how to use the ERP software.
Reliability
reliabilityis one of the most important factors in assessing the quality of the construct measures , and
it is a necessary condition for scale validity. A statistically reliable scale offers consistent and stable
measures of a construct. Composite reliability appraise are used to assess the inter item reliability of the
measures.
Training
In ERP implementation process lots of projects fail in the end because of lack of proper training. Many experts consider users training and education to be an critical factor of the successful ERP implementation . The major reason for education and training program for ERP implementation is to make the user comfortable with the system and increase the expertise and knowledge level of the person. ERP related notion, characteristic of ERP system, and hands on training are all main dimensions of training program for ERP implementation. Training is not only using the new system, butalso in new procedure and in understanding the integration within the system – how the work of one employee the effect work of others.
The software requirement of the hotel ERP system
The investment of IT software is served for the hotel management and business developmentt.
Different hotels have different management features, but the shape of its working cycle of view, can be attributed to "logistics" and "cash flow" two aspects; and from the management point of view and processes, can be attributed to business, management, decision-making of three management levels.
Hotel management software reflected more in the management of ideas and technology content. Different levels of hotels have different demands of management software. If it is a multi-function integrated, community-based modern hotel, the functional requirements of hotel management software must be comprehensive and integrated. However, the major international chain hotels which have different market positioning, on the demand for hotel management software must be functional professional and standardized.
In terms of the business development, taking into account the three main business areas: First, cater for the hotel management system services; then is in order to consolidate of information technology and the next step in the hotel office automation services; third, to back up and stable.
Thus the reliability of computer systems and network speed is very demanding. And the hotel industry competition is so fierce, as the labor-intensive industries, how to reduce the cost of human resources is important, but not only price. More hotel management software reflected in management thinking, scientific and technological content, rather than low price, to pay attention to cost performance.
From the perspective of the principle of system design, establishing an appropriate ERP system for a hotel, reflecting improved performance, system design is necessary to apply the core of practical, easy to use, and the easy to use as the main line, fully take into account technology, application and development of harmonious unity. Therefore, system development should follow several principles as follows:
Overall protection principles:
Software system need to cover the entire hotel business. And establishment based on the original company organisation and system.
Practical principles:
Utility is the most important indicator of a measure of software quality system, whether the close integration with the business, and strict business orientation, which is a critical factor in the system. So, the hotel ERP’s functionality should be designed to integrate closely with the hotel business, and has a strict business focused and highly practical.
Human interface design principles:
Hotel ERP system is designed for enterprise applications, in appearance and behavior of interface elements with which they used the same method of operation. The operations should be simple, convenient and fast, general users can use without training.
Modular design principles:
ERP system is based on the needs of business dynamics, the system must have good flexibility. It should suit for the large changed and different information in the business.
Subdivision authority principle:
The users of the hotel ERP system are company employees, the access points can be within the company LAN, or it can be outside the company's Internet. For this complex application environments, the permissions for all users must be broken down and reliably manage.
As a hotel industry, there is a complete business process. The IT software requirement of Beijing HuiQiao hotel including: cashier system, reservation system, financial system, reception system, supporting services, output and maintenance system and so on. And the hotel need a stable and comprehensive database and ERP software server, windows system, and visual basic and so on.
The range of ERP’s used in the hotel industry
With the development of IT industry and computer technology, the enterprises have gradually got more and more information and intelligence. This greatly reduces the costs of the enterprises in the human and material resources and time management costs. So, how to optimize the business process, improve the quality of service and promote the hotel image by making use of the advanced information technology and communication technology, consequently keep ahead under the fierce competition in the market is the problem that the modern hotel business popularly concerned about.
The ERP（Enterprise Resource Planning）is a kind of popular form in the current enterprise management information systems. Most of the ERP systems help the enterprise to totally solve the core business problems of supply and marketing, finance, plan, quality and manufacture effectively.
ERP is a mamagement platform that built on the basis of information, using the systematic management thinking for business decision makers and staff to run the means of decision-making, is a new management information system that based on the management theory and computer technology. It is not just a set of software, more of a business management thinking and concepts of embodiment, which is a kind of powerful tool for modernization and scientific management in this information age. Currently, using computer technology to business information, has been widely regarded as the most advanced management tools. To improve the comprehensive competitiveness of enterprises, more and more enterprises choose the ERP.
The application of computer in the hotel, has penetrated all sectors of the hotel. In the modern management theory of the hotel, the hotel ERP system has became an important part of hotel’s modern scientific management. It will be an indispensable tool of modern science in the process of hotel management.
Implementation of the ERP system in a hotel can solve hotel enterprise logistics, capital flow, information flow coordination, in order to achieve the optimal allocation of resources, which increase the hotel’s capability of competitiveness in the same industry. So the design and implementation of the ERP project has important significance.
Each hotel has its own original management information system and different specific business operations. So, for hotel, the ERP system is developed specificly for its own corresponding business. Generally, a company will develop ERP management module on the basis of the existing hotel management information system, at the same time, to integrate existing systems, in order to enhance the system's information function.
ERP system is aimed to provide users with fast, efficient service, reduce tedious manual processing and error, timely and accurately reflect the work and business situation of the hotel’s all departments, thereby enhancing the hotel's efficiency and service quality. And combining with the modern hotel management to achieve a better economic efficiency.
Here is a example about the range of Beijing HuiQiao hotel ERP system.
The hotel organization chart:
Data flow diagram:
In the background database, hotel staffs set down three forms about the room information, entertainment project and staff information.
After the completion of the basic information into the hotel business process management, it relates to accommodation, entertainment, finance three major elements. Here I just give the Database Physical Model as follow:
The HuiQiao hotel ERP system is designed on the basis of hotel’s business process and original data flow. The functions of this system are as follows chart:
According to above, the ERP systerm of a hotel intergrate and coordinate its business process, such as: reception, accommodation, entertainment, background control,, financial and output and so on.
The security issues of ERP system
ERP system covers the application of the most critical and most sensitive business information resources, just as corporate "black box", from which we can find a corporate organizational structure, management philosophy, customer resources, human resources component, enterprises capability, distribution channel, partners, competitors and other aspects of the information. At present, the accident predictable and disaster response mechanisms are not established during the process of developing the ERP system, ignored the issue of information security of the ERP system. Both a supplier of ERP systems, or implementation services, third-party advisory body, have too much concern on the ERP system functions, while the ERP information security lightly, or blind.
ERP information system security, including physical security, information security, operational safety and security of person the four elements.
Physical security is the protection of computer equipment, facilities (including Internet) and other facilities from natural and man-made destruction of the measures, process.
Information security is to prevent the information be intentional or accidental leakage of illegal authorization, alter, destroy, or the measures and process of the information is illegal system identification and control.
Security of the operation of a system is risk management, audit trails, backup and recovery, and emergency measures and content in four areas.
Personal security mainly refers to the system used, management of safety awareness, legal awareness, the performance of safety skills and so on.
ERP software companies such as SAP, ORACLE, IFS, QAD, SYMIX , implementation methods are in great detail, every stage and process have specific documents and deliverable results, and steps close, the implementation cycle is long, but in the actual implementation because of rapid business development, implementation consultant level from high to low, low level of business management and personnel quality is not high, the inadequate funding, inadequate training, and many other factors make implementation of the project can not be in accordance with the provisions of the ERP implementation methods, and the high cost of making some of the ERP implementation project evasive, full implementation of the project come to nothing.
In terms of the hotel ERP system, the security issues is very important for the company.
Hotel ERP system is a human-computer interaction software. Hotel Network as an open network, and application of the special structure of the diversity of the network makes the hotel exsit many specific network security vulnerabilities. Such as, hotel Internet users are mobile users, large differences in personal computer security, network access to large differences within the network can easily lead to ARP, DDoS and other attacks, which not only have a impact on the hotel customers, but also the operation of hotel ERP system.
Technically, the complete system, first to protect the users of business data and management information security, but at present some of the ERP products in the processing mode of peril to the business users have left too much "time bomb".
Account information directly writes into the MSSQL database, Master. Master is the hub of the MSSQL, once accidentally operation, will result in the collapse of the entire database.
In the system, all the supporting information are free to remove. Such as, after business happened, the way of payment can be removed, The results of all the original transactions of business which deals with this settlement, the clearing mode field bits are cleared.
The data between the various sectors may exist to be repeated to change and leakage, etc. If all the basic information has not classified into the various columns distributed by permission, by functional areas to be addressed. Such as the Purchasing department can only deal with procurement-specific information materials, and production departments do not need to understand the main suppliers of materials. Then the data or information may exsit the situation of repeating and leakage.
The use of this system is based on the computer, if the computer security system is not very good, outsiders can easily invade the internal network to the system caused by damage or destruction of data.
Network of financial implementation of data security under the ERP environment involves system software, hardware, operating environment, security and computer crime, computer viruses, computer management and other issues. Whether the data within the ERP system or data from the Internet are likely to be destroyed, to be tampering and theft, once these data have been destroyed, will cause all kind of losses to the enterprise directly or indirectly.
Frequent login and query operation makes the illegal users easily to steal customer information, and change, addition, or delet the various financial and non financial data., causing financial loss to the hotel and hotel customers.
As a labor-intensive industries, there are many staffs within the hotel. Internal abuse, such as the operational errors, vandalism, and other internal modus, etc, causes the security issues.
The security solutions
1. The establishment of ERP security and control mechanisms for risk prediction. Using "model and the consequences of failure analysis" technique, predicted and found that every aspect of the system arising from (or potential) failure conditions, for the continued safe operation of the ERP system to reduce potential risks.
2. The establishment of security protection strategy and ERP system, by identifying key information, job allocation, staff competence, specifically the use range of enterprise ERP information and treatment, to protect the computer equipment and facilities, prevent viruses, hackers and other intrusions, tampering and destruction, monitoring administrators, application staff in the safety management system and strict implementation of safety norms of safe operation and management.
3. Effective ERP implementation of security protection technology, mainly server security control, access security control, database security control implementation of the three items.
4. Rigorous staff training programs improve staff's working ability and professional ethics.
Recommendations on ERP solution selection
Business Requirements consideration When selecting an ERP Solution
We have decided that ERP is the route we need to take, it is important to begin by looking at our desired operational model and using that as a starting point in determining which software to implement. Executives should define and document key hoterl industry requirements for any package they may select. This involves not only nice-to-haves, but also requirements that are "deal-breakers" if the software is unable to accommodate. In addition, executives should use ERP business requirements definition as an opportunity to improve current operations, efficiency, and effectiveness. The last thing a company should do is implement software to automate the same flawed commercial processes. Instead, it should be focused on achieving measurable business value for our organization, and we should choose the software the best enables we to do this.
Business Case and return of investment （ROI）consideration when selecting an ERP solution
it is important to understand and document what our total costs will be for each ERP vendor under consideration, as well as our anticipated business benefits. This is important in gaining approval from other executives or our Board of Directors, and it is also helps ensure that we realize the potential benefits of implementing ERP. All costs, including such as internal project resources, data conversion, and lost productivity immediately following go-live, should be included in the business case and ROI calculation for each ERP vendor we evaluate. In addition, benefits should be reasonable and not overly aggressive. Ultimately, our business case should be a tool to manage business costs, benefits, and ROI going forward, not just as a sales tool to justify a decision that's already been made. And if the resulting ROI for a particular ERP vendor does not make sense or meet minimum investment criteria for our hoterl, then it's probably not a good idea to undertake the project.
Implementation Partner should consideration When selecting an ERP Solution
Software companies aren't always the best at implementing their software, and some are more expensive than others. we can often find third-party vendors and consultants that can implement ERP more successfully or at a lower cost. It is also important to look at consulting firms that are capable of assiting we manage the non-technical aspects of the project, such as organizational change management, training, and ERP advantages realization.
Enough Resources to Commit to the Project should consideration when When selecting an ERP Solution
Even if ERP is perfect for our hotel and we have chosen the perfect software, things will deteriorate very quickly if we don't have enough employees to dedicate to the project. It doesn't matter if we have assembled the best team of consultants and implementation partners; it's our employees that will ultimately make the project succeed.
Licencing requirements
The HuiQiao hotel has Software Certification of HuiQiao hotel and Software Product Registration Certificate of HuiQiao hotel.
The hotel must register their activities and approve it by the Data Protect Commissioner or Registrar. All the data must be lawful and effective.
Recommendations
Through the analyze of IT software requirements , the range of ERP used in hoterl and security issues, we strongly recommend that our hotel should invested substantially in IT and use ERP system to manage the hotel. It will let hotel save the time cost , human cost , and get more profit .
Summary and conclusions
The cost of establish the ERP system is high. If a hotel has the economic capacity of developing ERP and other hardware and software equipments and Technical feasibility, the hotel can develop the ERP system in the business process. In the long term, a great ERP system can lead to better economic benefits, and make the hotel organisation and management more rationalization, informationization, intelligence, reducing the cost of hotel management. Of course, there are some problems during the process of using ERP system. It is very difficult to establish a company's ERP system that is perfectly suited for the hotel’s environment. Hotels need to analysis from the various aspects, such as the economic feasibility, technical feasibility, demand analysis, to get whether it is worthwhile to implement ERP.
In my opinion, the Beijing HuiQiao hotel as a 4 star hotel. It has a relatively complete management system and economic and technical conditions, it can implement the ERP system in the business instead of the past Enterprise Information System.
Reference
“MODERNIZATION” No.07, 2009
“Make ERP a success”
“Critical success factors for the implementation of ERP ”
“Hotel management by IT system ”
“Security on erp”
“IT software requirements of ERP”
<<ERP Principle, Design and Implementation >>, Version 2, Hong Luo
