Challenges in ERP transformation of a multinational service sector company

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Volume Title

School of Business | Bachelor's thesis

Date

2023

Department

Laskentatoimen laitos

Major/Subject

Mcode

Degree programme

Laskentatoimi

Language

en

Pages

23 + 4

Series

Abstract

The purpose of this thesis is to investigate the challenges encountered during the Enterprise Resource Planning (ERP) transformation process in a multinational service sector company. The study concentrates on the transformation from the perspective of the financial department, particularly exploring the impact of transitioning to a cloud-based ERP system from an on-premises solution, and the additional complexities caused by the multinational scope of the project. This study utilizes a qualitative case study approach to provide in-depth empirical insights on these topics. The research material for the study was collected through semi-structured interviews with key finance department personnel involved in the ERP project, including the Chief Financial Officer, Senior Accountant, and the Project Manager responsible for the finance department. These interviews provided a multi-faceted view of the problems faced during the ERP implementation, and their impacts on the workflow of the finance department. The findings of this study highlight the complexity of multinational ERP transformation from on-premises ERP to cloud-based ERP. Multiple challenges were revealed, including delayed invoicing, unsuitable system features, communication barriers with international consultants, and manual workload increase. Additionally, the integration of various software systems posed significant difficulties. Reporting emerged as a critical issue, with the new system failing to deliver detailed data, leading to a decline in reporting quality. These findings underline the importance of thorough planning and testing, effective communication, and consideration of local requirements in multinational ERP transformations.

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Thesis advisor

Mättö, Toni

Keywords

ERP implementation, cloud-based ERP systems, international ERP implementation, ERP implementation challenges

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