Enterprise resource plan readiness assessment in Lolo Company, Chengde City, Hebei Province of China

Abstract

This Special Paper is a study of the Enterprise Resource Plan Readiness of Lolo beverage company - a typical beverage and food manufacturer. The study employed the descriptive method to analyze the present situation and applied the qualitative research approach to describe and assess the ERP Management Readiness of Lolo Company. This study focuses on the background of Lolo company’s competition, problems faced, and problem solving method to initiate ERP system. Before the initiation of the ERP system, there was a determination whether the company is fit to initiate it. The objectives of the study are to assess the company’s: IT strategy and planning readiness, IT governance capability, risk management associated with ERP implementation capability, application management capability, service management capability, and IT resource management capability. The theory of Seven Steps in the ERP Process is used to analyze the existence of the enterprise’s ERP readiness assessment project and also which level the company is positioned. The research population involve in the study are those from the IT, Accounting, Purchasing, and Supplies Departments. The total respondents is to 212. Based on the data analysis, Lolo Company is in a good position to initiate an ERP system. The main findings are: Lolo Company’s IT strategy and planning readiness, IT governance capacity, application management capability, service management capability, and IT resource management are in good position to initiate an ERP system, but the risk management associated with ERP implementation capability is in a worst position to initiate an ERP system