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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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