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Chapter 1 • Introduction to Enterprise Systems for Management 31

•People and organizations are an important part and remaining current. Organizations are
of the implementation process. Some organi- often choosing to implement systems with
zations do not have the expertise or even the minimal modification (i.e., vanilla) to
staff to implement a complex ERP system ensure that the system can be upgraded on a
successfully. In that case, an implementation timely basis and thereby remain current
partner, either the software vendor or a third with industry.
party, should be hired and used to assist or
even to lead the implementation team. With this high-level overview of ERP systems
•Whereas ERP implementations are costly you will be prepared for the next few chapters,
in time and resources, the greater costs are which will discuss the value of ERP systems and
in process change, system maintenance, implementation complexities in greater detail.

Exercises

1. Comparing ERP Vendors: You have been appointed features are supported by this software to improve
as a consultant to a small manufacturing company accounting employee productivity and help the orga-
that is planning to select an ERP software vendor. nization in their financial/accounting process?
The company has 300 employees spread across the 3. Application Service Provider (ASP): Find an ASP
United States, Canada, and Europe. Select five for ERP software. Visit their Web site and write a
prominent ERP vendors and visit their Web sites to report to your organization on how the ASP service
find information on the following: works. For example, how will employees access
a. The business functional areas their product the software? How will data be stored? What secu-
supports rity and privacy safeguards are provided? In addi-
b. The product’s industry focus and what size of tion, compare the cost of renting the application
business their product supports versus buying and installing the ERP software on
c. The average cost of the product or any license the company’s servers.
fees per seat 4. Careers in ERP: Find the various career options
d. How long the vendor has been in business available for a person who is thinking of a career in
e. Any other critical information on the vendor ERP. What are the starting salaries as well as the
career opportunities? Compare the salaries with
Use a spreadsheet to present the preceding infor- other IT areas. Present this information on a
mation in a written report to top management of spreadsheet, graphs, or charts for a quick analysis.
the company with your recommendation for a You may need to research in computer magazines
product. Please make sure to justify your decision. like ComputerWorld, CIO, Datamation, or e-Week,
2. Software Functionality: Download a demo applica- and make sure to provide your references for the
tion of Great Plains software and evaluate its accounts data presented in your analysis.
receivable and accounts payable functions. What

Review Questions

1. How is the role of ERP systems different from tra- 3. Among all the ERP components listed in the chapter,
ditional TPS, MIS, DSS, and others? Can an ERP which component is most critical in the implementa-
system support all levels of management? tion process and why?
2. Discuss the evolution of information systems in an 4. Discuss the role of ERP in organizations. Are ERP
organization. How can the use of ERP systems remove tools used for business process reengineering (BPR)
information or functional silos in organizations? or does BPR occur due to ERP implementation?