Enterprise Resource Planning Systems - Essay Example

Running Head: ERP ERP [The [The of the ERP Introduction In today's lively and spirited business environment, survival, enlargement and productivity are the essence goals of all company. Furthermore, to stay spirited, enlightened companies have strived to get not only customary actions such as lowing expenses and final unbeneficial facilities but in addition ground-breaking actions such as applying new Information Technology or creating new crop. Therefore, many expected companies choose to do E-commerce as an connect to its main business in respond to the spirited ecological. Beyond the shadow, enterprise resource planning: An accounting-oriented in order system for identifying and planning the enterprise-wide resources wanted to take, make, vessel, and explanation for purchaser orders. No doubt, Enterprise resource planning (ERP) systems ongoing as a means for inventory control and grow to put back islands of in order by integrating customary organization functions, such as financials, payroll, and person resources, with other functions counting developed and sharing. Currently, the complexity of commerce is creating new consumer needs; the enlargement of computers is raising new potential; the mission for new markets by vendors has known users a new influence; and ERP is evolving one time once more. Part A Industrial Case Study 1 SAP is the world's most important supplier of industry software solutions, and is the third-largest self-governing software vendor in the earth with additional than 64,500 installations in 120 countries. No doubt, extra than 20,000 companies are with SAP solutions. In 2002 SAP had approximately $7.8 billion in sales. It was founded in 1972 by five previous IBM workers; Dietmar Hopp, Hans-Werner Hector, Hasso Plattner, Klaus Tschira, and Claus Wellenreuther. Moreover, their dream was to develop normal application software for real-time industry dispensation. Therefore, the business is headquartered in Weinheim, Germany with its major place of work in nearby Mannheim. The corporation is still a confidential business. Henning Kagermann is the CEO of SAP. SAP continues to guide the marketplace by staying in front of rivalry and listening to their clientele wants. According to the expert analysis in 2000, with the internet captivating off, SAP turned its center to the user and urbanized mySAP Workplace and cemented the way for the thought of an enterprise doorway and role-specific access to in order. In 2003 SAP introduced NetWeaver which provided their clientele with solutions for end-to-end business processes. On December 15th, SAP announce that they are preliminary a computer security repair for its business clientele. In the repair, SAP searches customers' industry systems distantly for vulnerabilities in their safety settings. In addition to inquisitive its possess software, SAP checks Internet gateways, user authorizations and interfaces to other systems throughout the assessment, which lasts one or two days. As part of the psychoanalysis, SAP delivers a report detailing safety gaps and recommending action. This is now another instance of how SAP listens to their users and adapts to the wants of their clientele. Oracle provides a great deal of the similar options as SAP for commerce solutions. The largest dissimilarity being that SAP approach as one commerce suite and Oracle can be bought this method or as person pieces needed for one's exacting commerce. One big pharmaceutical corporation that has purchased and implemented Oracle software is a small corporation you may have heard of previous to, Pfizer. Rob Goodwin of Pfizer had this to say concerning Oracle, "Oracle has provided high-class, enterprise level software, so that somewhat than center on IT; we can center on the science. Furthermore, we bring in order from surface to surface web portals into Oracle databases; then there that in order to scientists, in order technologists, to whoever needs the in order" Citibank and Visa are also great corporations operational on Oracle. Not every corporation is content with Oracle although. Oracle the length of with Sun Microsystems caused the internet sale site E-Bay to collide on June 10th, 1999. This cost E-bay 22 hours of online occasion and innumerable dollars. As by means of the other ERP software, implementation can be unsuccessful for the subsequent reasons: inherent difficulty of ERP implementation, unrealistic expectations, exterior advisor issues, over-customization of software, insufficient training, with IT to resolve the difficulty, process risk and procedure barriers, timeline suppleness, business civilization, and communications issues. It can get years to total implementation and price as a great deal as $500 million for a big company. Moreover, there is no assurance of the result. Industrial Case Study 2 Many researchers contain pointed out the meaning of Supply Chain (SC) and Supply Chain Management ( SCM ) in spirited environment. In this account, we will talk about about ( i ) Toyota Mortor Manufacturing North America ( TMMNA ) which is situated in Erlanger, Kentucky, present supply chain position and one of its suppliers, TAC manufacturing, located in Jackson, Michigan, supplies direction-finding wheels and air luggage for TMMNA, current provide position by sketch supply chain drawing, ( ii ) the probable ready and provide chain strategies which might be used to improve TMMNA's future performance to get spirited benefit in excess of other firms and ( iii ) the technological and person resource ( HR ) changes that require to be complete to hold up the implementation of these strategies. MRP is a extensively used manufacture scheduling method in developed manufacturing to diagram the requirements of raw resources by using bills of fabric, inventory, open arrange information, guide time and master production agenda. Nagendra ( 2001 ) explain it aim is to decrease the inventory cost whilst demand relationships are met. It ropes to diagram for effectual manufacture and control the materials. One of the helpful software which assist for MRP is Enterprise Resources Planning ( ERP ). ERP helps manufacturers to improved control the occasion, raw resources and resource supplies to fulfill manufacture orders. It provides the connection flanked by planning and assembling systems by acquiring and distribution in order beginning and to suppliers, dealers, clientele and workers. From that, it provides to create master manufacture schedule for MRP. TMMNA use this ERP and MRP programs for it manufacture system. TMMNA uses ERP solution by licensing through People Soft Inc. to hold up parts manufacture facilities developed and assembly of engines and other automotives subassemblies. ERP provides TMMNA for effectual order organization, inventory, purchasing and manufacture planning by presentation each section in order. ERP helps TMMNA to converse with suppliers and other TOYOTA companies about necessary materials to create master manufacture agenda. The amount of fabric by each manufacture process is computed. Then a invoice of materials is complete based on master manufacture schedule to give MRP. Because of ERP and MRP, TMMNA knows every day required quantities of every material to be old inside corporation. 1) Why Companies Need To Implement ERP In this extremely automated, IT-led business surroundings, companies are compulsory to keep up-to-date by means of the new technologies to stay competitive (Siriginidi, 2000a). ERP systems supply distinct compensation to companies adopting them as they can put together commerce applications by real-time information. Therefore, ERP systems give the income for organization to respond to the rising business needs in extra effective and well-organized ways. This research focused on this truth that the major benefits of ERP systems are seen as the manufacture of real-time information communal across the association and as a result the integration and mechanization of business processes. Therefore, this is chiefly significant in this new trade surroundings anywhere mechanization, efficiency and competence in operations and real-time information are significant factors for industry success. The stipulation of opportune in order improves the executive process, planning and control of ERP adopters. Consequently, senior effectiveness and competence in operations and better customer approval are the ultimate reimbursement resulting from ERP systems (Gupta, 2000). ERP systems evolved from higher developed technologies (AMT) together of which were urbanized as a response to the more and more spirited environment. Furthermore, in particular, their reason has been to increase excellence, lower inventory levels and improve client service mostly via improved developed suppleness (Siriginidi, 2000b). Others account the year 2000 difficulty, money consolidation (Euro), integration of all industry functions and processes and Internet border as extra motives for ERP applications (Gupta, 2000). Within ERP surroundings, transactions are treated as fraction of the inter-linked industry processes (Gupta, 2000). In spirit, business processes are included and automatic whilst, data is communal across departments and particularly, real-time in order. Therefore, one may wait for that a "total" ERP system would slot in "modules" relating not merely to the traditional secretarial information system but in addition, store control, MRP, and logistics. EDI systems and e-commerce strength also be extra extent of an ERP system. Nicolaou (2002) information on the efficiency in cost organization systems of JIT and EDI systems' use. Overall, the application of ERP systems leads to greater than previous to competence and effectiveness in commerce processes permeating organization executive at all levels. Although ERP system reimbursement has been examined in the history, their crash on organization process per se has not been careful. Further, the motives for adopting ERP systems counting users' assessment of ERP systems are issues that stay uncharted. Problems and Requirements before the Installation In conditions of the troubles encountered in ERP implementations, researchers account on technological factors (Siriginidi, 2000a). Others account softer factors for ERP system achievement such as managerial culture. Substantial price and time overruns, managerial troubles including worker resistance to change also come into view significant barriers for ERP system achievement. Business procedure re-engineering (BPR), the appropriateness of commerce and IT inheritance systems, management civilization, top management hold up and message are thought of as critical achievement factors in implementing ERP systems. Spathis and Ananiadis (2002) examined the crash of ERP systems on organization secretarial in order systems at the Aristotle's University of Thessaloniki. Evidence shows that, users' perceptions in downward order of significance are listening carefully on the next factors: Managerial IT Infrastructure Operational In brief, researchers have recognized a number of troubles linked with ERP applications as well as dangerous achievement factors in ERP implementations. ERP implementation problems Examining the troubles encountered in implementing ERP systems may give details why ERP system reimbursement have not been completely achieved by the companies worried. It might also provide an imminent of the possible of ERP systems. However, respondents speed implementation troubles at a low or standard degree not raising any issues of anxiety. The two major troubles arising relate to delays in implementation and worker resistance to alter both of which are in accord by means of the writing findings. It is also obvious that, personnel training, increased costs, version and addition problems are the most common ones. Problems in ERP implementations may be secret as technical, monetary and managerial. Therefore, a close co-operation both inside the organization and flanked by the association and the ERP supplier is essential in achieving a flat ERP implementation (Gupta, 2000). ERP System Helps To Eliminate the Problems Facing up to the risks Five steps can assist alleviate the risks of ERP deployment; ensure that commerce units take possession of the project, and assurance that project managers are answerable to commerce units: Ensure support by appointing a commerce unit head (and not an IT section head) to take accuse of the rollout. Therefore, this person be supposed to be offered incentives joined to the project's achievement. All technical implementation staff, counting outside system integrators, be supposed to report to this person point in the financial hold up by having agreed checkpoints for management savings goals throughout the rollout. Defining these checkpoints at the onset helps uphold tight control over expenses on projects of this scale. Build tracking metrics into the squash plan to allow commerce unit heads to check progress in the direction of savings and staff-reduction targets. These targets be supposed to be included into component budgets, as be supposed to any metrics old by senior managers to check progress. Develop a contingency diagram to protect next to dependence on a solitary individual, and create sure everybody knows concerning it. Ensure that the squash is integrated into commerce units' scheme planning, still if it does not have an effect on their budgets right away. After all, costs determination be owed to the commerce units finally, and managers will have to create efforts to modify process. If we analyzed then we come to know that this case described how two companies in fact handles and implements their ERP systems and what they went from side to surface for the implementation. The first corporation called Agilent Technologies had to use $105 million in income and $70 million in proceeds to get their corporation to be stable. Problems at first occur with the ERP mechanism in Oracle's e-Business Suite 11e software. Beyond the shadow, the difficulty made their system freeze for concerning one week until they were clever to transport the system up. Furthermore, this incurred main wounded for the corporation. This corporation learned a big class from this difficulty. They erudite that it takes more than now addition software packages to travel a system. People, process, policies and company's civilization are all factors that require being careful when implementing a main system alter. Russ Berrie and Co. took a $10.3 million defeat when their installation of packaged applications unsuccessful. They are annoying once more to implement the system properly this time. They will be responsibility it in phases which determination be finished in the after that 18 months. 2) Companies evaluated and chosen ERP system What are the major reasons company's knowledge failures in implementing ERP systems Many of the reason why a lot of companies knowledge breakdown when implementing systems is since their management's incapability to spec out their own supplies and the implementer's incapability to implement those spectacles. 3) Procedures for Implementation the ERP system What are more than a few key belongings companies be supposed to do to keep away from ERP systems failure Explain the reasons for your proposals. Companies require to be acquainted with precisely what kind of systems they contain and how they are run and operate. This is of very important importance since management wants to be able to grip any obstacles that strength approach their way. Companies to be clever to have organization and technological hold up groups within their corporation that have information in implementation of novel software and systems that they desire to have. Without this information or knowledge the implementation of their new systems or software might be a drastic difficulty when implementation occurs. Companies should too have pilot teams that sprint the new programs or systems previous to implementing them to the whole company. This would be a advantage so that these direct teams can converse issues so that they are determined previous to the implementation of no matter which to the entire corporation. It can be a disaster if implementation is complete to the entire corporation and amazing chief happens. The corporation can in fact be without a system for weeks on end awaiting it is clever to be permanent. 4) Companies particular problems Why do you believe ERP systems in exacting are frequently cited as examples of failures in IT systems growth, implementation, or management I don't believe that all companies actually contain the knowledge or appreciate what ERP systems they in fact have. When amazing goes wrong the first obsession to get answerable is the ERP systems. Management more often than not forever believes that amazing is wrong by means of the system primary and never thinks that it is the definite implementation or consumer of the system that might be at responsibility. a. Training Training, reskilling and expert growth of the IT workforce is dangerous. User training be supposed to be emphasized, with grave asset in training and reskilling of developers in software plan and method. Employees require training to understand how the system will modify commerce processes. There be supposed to be additional training and on-site hold up for employees as healthy as managers throughout implementation. A hold up association (e.g. help desk, online user manual) is in addition dangerous to get together users' needs following installation b. Hardware and Software Compatibility throughout the Implementation Stage. Software growth, testing and troubleshooting is necessary, start in the scheme phase. The overall ERP structural design should be recognized before use, taking into explanation the majority significant requirements of the implementation. This prevents reconfiguration at each phase of implementation. There is a option to be complete on the level of functionality and move toward to relation the system to inheritance systems. In adding, to best meet commerce needs, companies may put together other particular software crop with the ERP suite. Interfaces for profitable software applications or inheritance systems may require to be urbanized in-house if they are not obtainable in the advertise. Troubleshooting errors is dangerous (Holland, 1999). The association implementing ERP be supposed to work healthy with vendors and consultants to make your mind up software troubles. Quick response, endurance, perseverance, complexity solving and firefighting capabilities are significant. Vigorous and complicated software difficult eases implementation. 5) Quantifiable Benefit for Companies Experience Implementing ERP systems productively is loaded with risk. It calls for physically influential management, a clear implementation diagram, a constant watch on the financial plan, and an open stake in the project for commerce units. The aptitude to administer operations of this difficulty can be lacking, and spending overruns slippage more often than not occur to too ordinary. Ensuring from the onset that a company has a physically powerful commerce container and recognizes the majority ordinary pitfalls will go a extended way toward plummeting the risks. According to the expert analysis from the other give, ERP Applications execute some of the most dangerous business functions inside companies around the sphere. IT departments need hold up for documenting, organization, and implementing application changes crossways heterogeneous systems, particularly as ERP solutions start growing. This determination be even more significant for companies that develop their ERP systems into platforms for future application growth and system addition. a. Operational Saving This obviously suggests that ERP systems have an significant if not a important crash on inheritance systems and particularly on secretarial ones. Further, the confirmation also reinforce the disagreement that ERP systems have been winning in fulfilling their reason for the commerce as a entire as discussed in the preceding sections. That is, the addition of applications, the manufacture of real-time in order and particularly in order for decision creation are obviously moving not only company's secretarial in order systems but also, business operations in universal. In addition, "increased user-friendliness of in order systems", time reduction for financial records end and preparation of monetary statements is also apparent as benefits derived from ERP applications. Further, "better decision-making procedure", "improved harmonization flanked by departments" and "better internal message" have also been extremely rated additional reinforcing the on top of quarrel. b. Increased Profits Overall, the reimbursement achieved by ERP adopters is powerfully influencing accounting in order but also, managerial planning and decision creation at every one levels. Nonetheless, there is motionless room for development as individuals' perceptions are not that brawny on the on top of benefits. That is, not all commerce operations contain been included yet, suggestive of further space for improvement and chiefly more changes in the secretarial in order. In exact, although all companies are in service financial and organization secretarial modules, not every one of them operate permanent asset register, estimate and stock/purchases modules. A link stuck between ERP system modules operated and the apparent benefits attain relates to the fundamental reasons for adopting such systems. Increased command for genuine time in order, information generation for choice making and addition of applications are reasons for adopting ERP systems indicated by the preponderance of the experts (Gupta, 2000). This judgment reinforces the quarrel that ERP systems have been winning in satisfying adopters' wants. c. Productivity And Company Performance Finally, monitoring and assessment come into engage in recreation at the extract phase. Milestones and targets are significant to keep path of progress. Achievements be supposed to be deliberate against scheme goals. The development of the project be supposed to be monitor vigorously from side to side set milestones and targets. Two criteria may be old. Project management based criteria be supposed to be old to gauge against conclusion dates, costs and excellence. Then ready criteria should be second-hand to gauge against the manufacture system. Monitoring and feedback comprise the swap of information flanked by the project side members and psychoanalysis of user criticism (Holland, 1999). There be supposed to be an early evidence of success to run skepticism. Reporting be supposed to be emphasized with tradition report growth, report generator employ and user training in coverage applications. Management wants information on the result of ERP on business presentation. Reports or processes for assessing information need to be intended. These reports be supposed to be shaped based on recognized metrics. It must comprise effectual quantifiable project goals that get together business wants and are reasonable. moreover, presentation should be joined to recompense. 6) Earlier version of MRP or MRP system In this account three forms of planning so as to be working by companies to organise their resources are look at. The three types are: 1. MRP - Material Requirements Planning 2. MRPII - Manufacturing Resource Planning 3. ERP - Enterprise Resource Planning. Each one of the on top of was examined by meaning, the way they be different to the others, and the compensation and disadvantage linked by means of them. To manage an organisation is fundamentally to do as Henri Fayol suggests on top of and MRP, MRPII and ERP help to do so. They every have their possess merits and demerits plus its up to a corporation to make a decision which one suit their needs additional or determination be more effectual for them(Caron J. Ward, 2006). By planning efficiently, a company wishes to attain their business goals professionally so that customers are content and the corporation makes a income and can consequently grow. One of the three on top of should allow a company to achieve this. In implementing any of aforesaid, the company must be ready to create some changes. As by means of all new procedures approved out extensive investigate and training have to be undertaken to make sure a winning consequence. Part II The preponderance of research investigative structural processes and frameworks has adopted a unforeseen event move toward, prescribing suitable linear relations among a collection of variables known convinced situations. However, investigative structural frameworks and processes as two separate entities provide merely a limited viewpoint of the method in which a solid is prearranged. Research in organizations has exposed that a array of variables and relations need to be examined to suitably understand managerial structuring (Hedberg, 1976). The unique insight of Burns was that a steady demand led to the automatic association, whereas a altering demand shaped the need for an natural organization with its stress on novelty and flexibility. Hence the person's name structural unforeseen event. Though not documented for it, there were the ones who provide an evolutionary hypothesis of increasing information and its collision on these choices, suggesting that pressure group toward the natural form took put as departments of creation development, applied investigate, and then basic investigate were life form additional to the arrangement of the association. Building upon their labor and so as to of Bell (1973) and others, Hage & Powers (1992) quarrel that more and additional financial and following sectors must now emphasize also the organic model or interorganizational network. The learn of Hage et al (1993) provides experiential proof for this set of ideas. These similar ideas concerning development and knowledge societies be able to also be practical and experienced with additional complex forms such as interorganizational networks. However, as yet, the contingency that give details why one exacting form of interorganizational system is enhanced for which kind of novelty and in which institutional or communal background have not been urbanized. This research focused on this truth that it was suggested that it was worthwhile to look at the feedback effects on the difficulty of the separation of labor. As this increases, at a number of tip the Lawrence & Lorsch (1967) solutions for addition break down. Firms (and administration agencies) must tear into either divide firms or "deconstruct" into income centers, two processes happening very often now (Hage & Powers 1992). How competencies, and additional highly their integration, impact on the limits of the organization dishonesty at the heart of an evolutionary hypothesis of the solid (Marlene Piturro, 1999). Conclusion It is difficult to work out return on asset for ERP decisions; though more than a few winning installations of ERP had theatrical returns on asset. For instance, Microsoft estimates that the savings in ERP will be paid reverse by way of better presentation in level two years. It have to be realized that the ERP is an enabler. ERP gives nimbleness to association, which can be browbeaten to improve productivity, market share or client service. Without ERP, the group may not be in a position to knob larger business or give faster response to clientele. The consequences from distended business or earlier customer reply should pay rear for ERP asset. It is predicated on the information that the association would influence the nimbleness towards such business goals. ERP helps in pursuing such goals frequently successfully. But meager ERP implementation does not of necessity translate to benefits. The base line is, an ROI takes occasion. So far, based on ROI studies, 20 percent to 30 percent of companies by ERP have seen an ROI. Eighteen months ago, the shape was 10 percent to 20 percent, and three years before, it was fewer than 10 percent. As companies increase more knowledge, they turn out to be more winning, in part because they have redefined the range of their achievement. In adding, an appreciation of new skill usually comes in retrospection. The finish users of the new knowledge frequently don't come to understand the benefits awaiting much afterward in the procedure. At Toro, an SAP ERP system is the primary of many steps to a substantially improved stage from which to conduct E-business activities. By extending SAP onto the Internet, Toro tactics to share inventory in order with business partners continuous, so they be able to observe in genuine time which products are obtainable and which have been dedicated to other associates (Dilip Wagle, 1998). Few companies can wait for quick reimbursement on their enterprise systems. Many companies understand that ERP-type applications are just the "path"; it's what they force over that pathway that determines the advantage. The key is to suspend in there. ERP is a infant, need to be nurtured. It took decades to shape out how to run materials (MRP), yet the prospect are to spend a pair of years to shape out how to direct populace and resources. Reference Article Title: The Case for ERP Systems. Contributors: Dilip Wagle - author. Journal Title: The McKinsey Quarterly. Issue: 2. Publication Year: 1998. Page Number: 130+. COPYRIGHT 1998 McKinsey & Company, Inc.; COPYRIGHT 2002 Gale Group Article Title: How Midsize Companies Are Buying ERP. Contributors: Marlene Piturro - author. Journal Title: Journal of Accountancy. Volume: 188. Issue: 3. Publication Year: 1999. Page Number: 41. COPYRIGHT 1999 American Institute of CPA's; COPYRIGHT 2002 Gale Group Article Title: ERP: Integrating and Extending the Enterprise Senior Leadership Examines the Benefits and Challenges of Enterprise Resource Planning. Contributors: Caron J. Ward - author. Journal Title: The Public Manager. Volume: 35. Issue: 1. Publication Year: 2006. Page Number: 30+. COPYRIGHT 2006 Bureaucrat, Inc.; COPYRIGHT 2006 Gale Group Allan.Hooks(2001),Oracle ERP Change Management Project Whitepaper, http://www.oracle.com/collateral/cmowhitepaper.pdf. Bell D. 1973. Post-Industrial Society. New York: Free Press Burns T, Stalker GM. 1961. The Management of Innovation. London: Tavistock Falkowski, G, Pedigo, P, Smith, B, Swanson, D, 1998, "A recipe for ERP success", Beyond Computing, 44-5. Gupta, A., 2000, "Enterprise resource planning: the emerging organizational value systems", Industrial Management & Data Systems, 100, 3, 114-18. Hage J, Powers C. 1992. Post-Industrial Lives. Newbury Park, CA: Sage Hedberg, B., P. Nystrom, and W. Starbuck. 1976. "Camping on See-Saws: Prescriptions for a Self-Designing Organization." Administrative Science Quarterly 21 (1): 41-65 Holland, P, Light, B, Gibson, N, 1999, "A critical success factors model for enterprise resource planning implementation'", Proceedings of the 7th European Conference on Information Systems, 1, 273-97. Lawrence F, Lorsch J. 1967 Organizations and Environments. Boston, MA: Harvard Bus. School Malhotra, Y, 1998, "Business process redesign: an overview", http://www.brint.com/papers/bpr.htm Markus, M.L, Tanis, C, 2000, "The enterprise system experience - from adoption to success", Zmud, R.W, Framing the Domains of IT Management: Projecting the Future Through the Past, Pinnaflex Educational Resources, Inc., Cincinnatti, OH, 173-207. Montgomery Research, 1999, "J.D. Edwards: enterprise business solutions for the era of active software", http://www.ascet.com/ascet/sp/spJDEdwards.html Musaji, Y. F., 2002, "ERP Systems Implementation Overview", Integrated Auditing of ERP Systems, Wiley Europe, Pg 16 Nicolaou, A. I., 2003, "Quality of Post-Implementation Review for Enterprise Resource Planning Systems", [Internet. Online] Available: www.ijais.org/Nicolaou.pdf Roberts, H.J, Barrar, P.R.N, 1992, "MRPII implementation: key factors for success", Computer Integrated Manufacturing Systems, 5, 1, 31-8. Rosario, J.G, 2000, "On the leading edge: critical success factors in ERP implementation projects", BusinessWorld, Philippines Siriginidi, S.R., 2000, "Enterprise resource planning: business needs and technologies", Industrial Management & Data Systems, 100, 2, 81-8. Spathis, C, Ananiadis, I., 2002, "Impact of accounting information system in improving efficiency of a state university", paper presented at the European Accounting Association (EAA) Conference, Copenhagen Stefanou, J.C., 2002, "Accounting information systems (AIS) development/acquisition approaches by Greek SME", paper presented at the European Conference on Accounting Information System (ECAIS), Copenhagen, Denmark, April 23-24. Tabachnick, B.G., Fidell, L.S., 1996, Using Multivariate Statistics, Harper Collins, Philadelphia, PA Wee, S, 2000, "Juggling toward ERP success: keep key success factors high", ERP News, http://www.erpnews.com/erpnews/erp904/02get.html Appendix Article # 1 Article Title: The Case for ERP Systems. Contributors: Dilip Wagle - author. Journal Title: The McKinsey Quarterly. Issue: 2. Publication Year: 1998. Page Number: 130+. COPYRIGHT 1998 McKinsey & Company, Inc.; COPYRIGHT 2002 Gale Group The case for ERP systems by Dilip Wagle Too often it's made on faith, not good judgment Will it cut costs Common pitfalls in implementation Enterprise Resource Planning (ERP) can be a blessing or a curse. Many companies find ERP systems help them make better-informed decisions. Others discover too late that their purchase has been based more on faith than good judgment, and run up tens or even hundreds of millions of dollars in extra costs and schedule delays. How, then, can senior managers ensure that their companies build a sound business case for deploying ERP systems And what can they do to guarantee that the promised benefits are not eclipsed by the costs of integration, process redesign, and training One answer is to take a cost-based approach to the business case. Another is to be aware of common pitfalls. Article # 2 Article Title: How Midsize Companies Are Buying ERP. Contributors: Marlene Piturro - author. Journal Title: Journal of Accountancy. Volume: 188. Issue: 3. Publication Year: 1999. Page Number: 41. COPYRIGHT 1999 American Institute of CPA's; COPYRIGHT 2002 Gale Group How midsize companies are buying ERP by Marlene Piturro Deciding which enterprise resource planning software is right for your company. Although major vendors have been selling enterprise resource planning (ERP) software to billion-dollar companies for quite some time, the selection of products that work well for midsize companies has begun to blossom only recently. (See glossary, page 47, for definitions of italicized terms.) But from the midsize company's perspective, the choices can be mind-boggling: what to buy, who to buy it from, how to make it work and how to keep it up-to-date. Off-the-shelf solutions seldom fit perfectly. Therefore, most executives need guidance to help them choose an off-the-shelf ERP package, alter it and oversee the changes. CPAs and financial managers can start by learning from the experiences of other companies. Whether carrying the flag for the corporate accounting department, serving on a cross-functional implementation team or serving as a consultant, CPAs and other financial executives can use these guidelines to help midsize businesses make wise choices when buying and implementing ERP. Article # 3 Article Title: ERP: Integrating and Extending the Enterprise Senior Leadership Examines the Benefits and Challenges of Enterprise Resource Planning. Contributors: Caron J. Ward - author. Journal Title: The Public Manager. Volume: 35. Issue: 1. Publication Year: 2006. Page Number: 30+. COPYRIGHT 2006 Bureaucrat, Inc.; COPYRIGHT 2006 Gale Group Tying It All Together: Enterprise Resource Planning Software May Be a Misnomer. after All, It Doesn't Do Much Planning and the Resource Bit Is Arguable. but If We Focus on the Enterprise, We'll See Why This Is Such a Hot Topic, Explains Karen Young. by Karen Young ERP, OR ENTERPRISE resource planning, sounds like such a great idea it's almost irresistible; integrate all departments and functions across a company into a single computer system that can serve all those different departments' particular needs. Except it's not easy. The needs of, say, a finance department are different from those of a warehousing operation. At a very simple level, these departments are going to focused on different parts of the business or at more or less customer-centric activity. After all, that's why these departments already have their own computer systems optimised for the particular ways that they do their work. [ILLUSTRATION OMITTED] But the promise of ERP--combining them all together into a single, integrated software system and a single database--is so great that enterprises the world over have heeded the siren call of being able to share information more easily and communicate more efficiently. Installed correctly, the paybacks can be enormous. Problem is, the opposite is just as true. The industry abounds with stories of software systems so inflexible it takes three years or more to install them because the business has to be almost literally rebuilt around the software. Of implementations that are so slow that by the time the new ERP system goes live, the business has moved on in rapidly changing markets and the process has to continue. True, these stories get less publicity as the software vendors, from SAP to Oracle, get more clever, but one reality remains: ERP is not for the faint-hearted. Read More