RATIONALE FOR ERP SYSTEMS

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RATIONALE FOR ERP SYSTEMS

• One of the key reasons why managers have sought
  to proceed with difficult ERP projects is
• to end the fragmentation of current systems,
• to allow a process of standardization,
• to give more visibility on data across the entire
  corporation,
• to obtain competitive advantage (Sammon Adam,
  2000).
• A seamless integration is essential to provide
  visibility and consistency across the enterprise.

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Myth and Reality of ERP Benefit Realization
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Large Systems Implementation Challenges

• Its not Priority 1
• Leave change management to consultants
• Underestimate the amount of work due to lack of
  experience
• People-intensive
• Requires senior management leadership and
  participation

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Large Systems Implementation Challenges

• Involves the entire enterprise
• New thinking and new processes
• New tools and retooling
• Too intensive for too long
• Unplanned problems and changes
• Schedule Slippage
• Work, Time, Resources

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The ERP Market Support

• ERP supports about 70-95 of a large
  organizational need
• The remaining 5-30
• Interfacing the ERP application with existing
  legacy systems using middleware, which adds to
  the complexity
• Interfacing ERP to third-party solutions.
• Writing custom software to extend functionality.
• Modifying the ERP source code directly.

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