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Chapter 1 • Introduction to Enterprise Systems for Management 19

likely the implementation will require significant system modifications after implementation.
In developing the business case for an ERP implementation one must make a decision on the
number of modifications to be made to address business requirements. An implementation
with considerable modifications to the ERP software package, sometimes referred to as
“chocolate” implementation, can increase the chances of success with the users because the
package has been customized based on user requirements; however, modifications increase the
investment in the system and introduce higher implementation risk.
In a purchased system like ERP, modifying the system means that every modification will
have to be addressed each time the system is upgraded. It is like paying for the modification over
and over again. Most purchased ERP systems today are minimally modified (or as-is) to protect
the investment in the system. This is sometimes called a “vanilla” implementation. Every ERP
vendor upgrades their system on a regular basis, adding functionality, fixing problems, and
generally keeping the product current with the ever-changing technology innovations to remain
competitive. Product life cycles are shown in Figure 1-11.

Software and Vendor Selection
The number of organizations using the Internet has increased dramatically since the early 1990s. The
Internet and Web browsers have created an environment that allows for information systems to move
out of the back room and onto desktops everywhere. Information systems have grown in functionality
and availability. They have also become increasingly complex and difficult to develop. From the
1960s through the early 1990s many organizations were very capable of developing an information
system application in-house. The development time was not lengthy, and the systems developed
were certainly not as complex. It is very different today. Most organizations lack the skill-set and
desire to spend the time and money developing an ERP system “in-house.” For many of the reasons
identified earlier many more organizations today have chosen to purchase ERPs on the market.
Applications Management
Implementation Operations and Post Production

Resource Requirements Production
Resource Requirements
High
Production

Med

Low
Base Personnel
Required Maintenance Upgrades Major

Testing
Backlog
Go Live
Development
New Modules
Design & Gap
Project Preview
FIGURE 1-11 Product Life Cycle