Chapter 8

ENTERPRISE SYSTEMS

Strategy, Management & Information SystemS

melinda.pacolli@ubt-uni.net
Enterprise System ensures:

u Business transactions are processed efficiently and accurately

u The resulting information can be accessed by end users and
managers in all business areas
u All operational and planning data are stored in one database
u The data from the centralized database is accessible by authorized
users across the organization and even with business partners
outside the organization.
Benefits of ERP

u Improved Access to Quality Data for Operational Decision Making

u Improvement of Work Processes based on industry best practices
u Elimination of Costly, Inflexible Legacy Systems
u Opportunity to Upgrade and Standardize Technology Infrastructure
u Simplified Consolidation of Financial Data
ERP Management Areas

u Supply Chain Management: order processing, inventory

management, and purchasing.

u Customer Relationship Management: sales, marketing, and

customer service–related processes.

u Product Life Cycle Management: all aspects of a product’s design,

creation, manufacturing, service, support, and eventual product
retirement.
ERP Management Areas
ERP Modularity & Customization
u Each industry has different business practices that make it unique.

u ERPs are modular - software modules meet the needs of specific

industries, such as manufacturing, higher education, utilities,
banking, oil and gas, retail, and the public sector.

u Organizations frequently need to customize a vendor’s ERP

software to integrate other business systems, to add data fields or
change field sizes, or to meet regulatory requirements.
 AVOIDING ENTERPRISE SYSTEMS FAILURES
u Assign a full-time executive to manage the project.
u Appoint an experienced, independent resource to provide project oversight and to verify
and validate system performance.
u Allow sufficient time for transition from the old way of doing things to the new system and
new processes.
u Involve users throughout the project and act on their feedback.
u Deliver project value early and often; a system feature does not need be 100 percent
complete to be shown to some key users.
u Plan to spend considerable time and money training people; many project managers
recommend that 30 to 60 days per employee be budgeted for personnel training.
u Define metrics to assess project progress and identify project-related risks.
u Keep the scope of the project well defined and contained to essential business processes.
u Be wary of modifying the enterprise system software to conform to your firm’s business
practices.