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Integration of a ERP software at Cap Gemini Ernst and Young (2006)

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ERP software allows the company to better control its production operations through optimizing the use of its human or material resources. This type of software has many advantages for businesses, such as process optimization of management integrity, uniqueness of the information system which facilitates internal and external communication, and cost minimization (no interface between the modules, synchronization treatments, etc). Some disadvantages are also present, such as: a high cost, cumbersome implementation or the need for following ongoing maintenance.

The many benefits of ERP software often lead companies to opt for this solution by ignoring a considerable drawback: the difficulty of ownership by the staff of the company. The choice of this solution was often to structure the business, but this can be extremely cumbersome. The effect on the human factor when such a change is taking place is very important. This is what we examine in the cases of Cap Gemini, and Ernst and Young - PAO.

PAO is an NGO founded in 1967 whose mission is to "reduce poverty" by raising money among the rich and redistributing them to developing countries through specific activities.

PAO seeks to continually improve its business, that is to say, to collect more money to be assigned to these missions. To do this, the organization implemented a program in 1998 (Business Process Reengineering or BPR) to change its organization; however, the operation was not successful.PAO is also aware that such changes require real experts, in 2000, the organization used Cap Gemini and Ernst & Young to implement ERP software.

The project's goal is threefold:
1. Renew the financial process
2. Renew the process of human resources
3. Improving "knowledge management"; many tools are reinvented with each new project - we try to reuse rather than create anew.

Despite efforts by both companies and genuine involvement by CGE & Y, the expected change has not yet happened, many disagreements and misunderstandings are occurring throughout the program.

Three broad categories of factors are behind this "failure ":
- technical factors
- risk factors
- human factors
We detail throughout this case to determine how CGE&Y should go about making this project a success.
Technical factors

Two different entities are responsible for IT (Information Technology) within PAO: the ITdivision and the IT committee. Only a few meetings are held each year between these entities to furnish an account of the expectations of IT users, and decide which strategy to follow. Markus Schneider also noted early on that users have no influence in strategic decisions, the committee does not play a full role.

CGE & Y has also identified several critical points in terms of IT:
- processes and IT activities are not clearly defined and the internal distribution of tasks does not seem consistent
- reallocation of IT resources in implementing the new structure must be strong
- There is a question regarding the ability of leaders to convince the staff to get involved and participate in the project
- cooperation between the entities and IT users

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