Enterprise Systems for Management 2nd Edition by Luvai Motiwalla Instructor manual
The chapter ends with some implications for management in the ERP process. In sum, it gives a good step-by-step introduction to key information about ERP. It explains its development, components, limitations, successes, risks and the process of establishing an implementation plan. It also gives the reader so much information about ERP systems that it acts as a summary for the rest of the book in itself. Additionally, tables in the summary section provide a quick overview of benefits and limitations of ERP systems.
ADDITIONAL RELATED INFORMATION
- http://en.wikipedia.org/wiki/Enterprise_resource_planning
- http://www-03.ibm.com/solutions/businesssolutions/doc/jsp/indseg/solutionarea/erp/index.jsp
- http://www.centredaily.com/business/technology/story/496923.html
- http://olcsoft.com/top%20ERP%20vendors.htm – an exhaustive list of current ERP vendors
- http://en.wikipedia.org/wiki/Information_systems – review of information systems including history of, and applications
- http://erpwire.com general information about ERP and ERP vendors
- http://media.wiley.com/product_data/excerpt/80/04712351/0471235180.pdf – a chapter discussing ERP implementation in detail
- http://www.dba-oracle.com/art_insider_erp.htm – information about the vendor selection process
- http://www.cio.com/topic/1463/ERP – a good general resource for ERP questions and product information
ANSWERS TO END-OF-CHAPTER REVIEW QUESTIONS
- How is the role of an ERP system different from traditional TPS, MIS, DSS and others? Can an ERP system support all levels of management?
An ERP system is different in that it brings all departments within an organization together. It seeks to unite all departments, open communication and consolidate all databases into one accessible database. Previous information system models did not have this focus or ability. ERP can support all levels of management, because it allows each level to utilize information in a customized manner. Upper-level management can utilize reports suited to their positions as overseers, while operational management can utilize detailed reports for their specific functions.
- Discuss the evolution of information systems in an organization. How can the use of ERP systems remove information or functional silos in organizations?
Most organizations start out with basic information systems, and build from a standard platform as they grow in size and needs. As their needs and market positions change, they may find that they need an information system that can better aid their business practices. At some point they may decide to implement an ERP system from a vendor such as SAP, Peoplesoft or Oracle. When a company implements the ERP system, it eliminates the divisions or silos that naturally occur in the organization.
- Among all the ERP components listed in the chapter, which component is most critical in the implementation process and why?
People, including all levels of employees and management, are the ones that will use and be affected by the ERP system. It is critical that all are on board with the decisions that are made, and willing to give feedback during all stages. An ERP system cannot be successful unless the people of an organization are willing to accept the possibility of change and business reform.
- Discuss the role of ERP in organizations. Are ERP tools used for business process reengineering (BPR) or does BPR occur due to ERP implementation?
Implementing an ERP often means BPR will take place. Organizations should realize that the purchase of ERP software requires some changes to business practices in order to run smoothly. Vanilla implementations will require the most amount of BPR, while chocolate implementations (although more difficult to get up and running) will likely require less BPR in the long run.