Integration of an ERP System: : a case study onintegration challenges with Microsoft Dynamics AX

Sammanfattning: Historically, system integration of ERP system and other existing IT systems within anorganization has always been a complex challenge, both technically and organizationally. Inmany cases, the budget for system integration corresponds 30-40% of the whole IT budget.Since system integration accounts for a large part of the cost during acquisitions andimplementation of an ERP system, companies are interested in the challenges that exist duringsystem integration, to simplify the integration process and hence reduce the costs. Tounderstand the challenges, a case study at Company X has been performed. The ERP systeminvestigated in the case study is Microsoft Dynamics AX.The purpose with this study is to investigate challenges that exist in large organizations duringsystem integration of ERP system and other IT systems that exist in the organization andthereby understand how integration can be developed in a more efficient way.The study entails an extensive literature study and two rounds of data collection throughqualitative interviews.The results showed that the challenges that exist at Company X are mainly organizational.Technical challenges coexist but they have a much less significant impact than theorganizational challenges. This can be explained by that there has been a heavier focus onsolving the technical related problems and maybe to some extent neglected the impactorganizational problems can have on system integration. Possible actions includes centralstrategy concerning how to work with Dynamics AX, it’s growth and future initiatives,policies and framework regarding working methods, increased authority and decision rights tothe group working with AX as well as minimize customizations and own development.