Reading Discussion MIS 7003 MBA Core Course in MIS Professor Akhilesh Bajaj The University of Tulsa Reading Discussion ERP: Common Myths Versus Evolving Reality © Akhilesh Bajaj, 2004-2007. All rights reserved.

Central Themes For Discussion ERP Systems Integrate & Optimize—How do they do that? History of ERP MRP & MRPII then ERP Properties of ERP Systems Multi-functional in scope Integrated: one time data entry Modular in structure: can buy a set of modules and add on later Single-vendor or multiple vendor? Discussion: Which is better? Survey Showed: Main reason to adopt: Simplify and standardize IT Second: To get accurate information for better interaction with suppliers and customers Third: Access to timely data, and improved business processes. Long-term: Improved business processes. How can one do this with an ERP? Think of our own jobs. What will make us change business processes? Consulting & Hardware costs dominate (table 2). © Akhilesh Bajaj, 2004-2006. All rights reserved.

Central Themes For Discussion Senior Management initiative and involvement was critical Smaller firms took less time to implement: easier to coordinate & live with whole implementation at one time. Almost no one modified (page 75 of article second column). Why? Useful life of installed system to be more than 10 years. Question: How can ERP systems improve our processes & our competitive advantage? One solution: Bolt-ons to analyze data in ERP systems such as i2 technologies supply chain optimization. Dell & Allied Waste scrapped their ERP implementation Nike & FoxMeyer reported major losses Key benefits: information centralization & standardization. Timely information. No reduction in operational costs short term or in work force. © Akhilesh Bajaj, 2004-2006. All rights reserved.

Central Themes For Discussion Success Factors: Senior Management Cross functional implementation team Much more time planning Used less consultants What about politics?: Who gets what screens and controls what data? The article concludes with productivity increases expected significantly as an ERP system stays in a company longer. Question: How? The future of ERP systems looks very promising in this 2001 article. Question: What is the current reality? $23 billion a year in late 1990’s, and http://www.kmworld.com/Articles/PrintArticle.aspx?ArticleID=12089 Predicted market will grow by 32% from 2000-2003!!! But only $28 billion in 2006! http://software.tekrati.com/research/news.asp?id=9083 © Akhilesh Bajaj, 2004-2006. All rights reserved.