1. 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, All rights reserved.

2. 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, All rights reserved.

3. 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, All rights reserved.

4. 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
Predicted market will grow by 32% from !!!
But only $28 billion in 2006!
© Akhilesh Bajaj, All rights reserved.