Your boss just came to the lunch. During the lunch he had a discussion with some business partners concerning modern organizational information systems. The boss' basic question to you was, "Do you think our company needs an ERP system?" Obviously,
without knowing the details of this company or the industry in which it operates, it would be difficult to provide a detailed answer to this question. Your new project may take days, weeks, or even months to answer accurately, but before you begin your research you should develop a short but detailed outline for a paper that will inform the boss about the basics of ERP, the advantages of ERP, as well as the disadvantages of ERP. Answer some of these questions within your outline/answer : ? What is ERP? ? Why should the organization get an ERP system? ? Why might the organization not want to get ERP? ? If we did get an ERP system what would be required for successful implementation?
? What is ERP?
An ERP System is an organizational information system that runs on a single database. Some of the key objectives of an ERP system include coordinating the information requirements for many or all of the functional departments of an organization and making data readily available to everyone associated with the supply chain and via a user-friendly system.
? Why should the organization get an ERP system?
Some of the benefits to getting in ERP system include utilization of a single database, which requires a fairly simple computer infrastructure, easy access to data and information for all employees of the organization, the potential for improved data analysis because of the easy access to data, greater coordination with supply-chain partners, the potential to hand off important decisions to supply-chain partners who may be more qualified to respond to market changes.
? Why might we not want to get ERP?
Investing in ERP system can be extremely costly. An organization, in addition to paying for the ERP system, will incur high costs to implement the system, train its employees, alter its processes, and convert data from Legacy systems for use on the new ERP system. Also, organizations need to prepare for a drop in productivity due to the learning curve associated with the implementation of the ERP system.
? If we did get an ERP system what would be required for successful implementation?
Successful implementation of an ERP system requires the commitment and backing of top management, adequate investment resources, appropriate system training, excellent organizational communication, and an ERP system that's capabilities match the requirements of the organization/processes it will be serving.
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