Week 3 Sai 460 You Decide

To: The CEO of ChipInTime

As IT manager at the headquarters office of ChipInTime, I have written this letter to share with you my recommendation for upgrading the system.

ERP is an acronym for Enterprise Resource Planning, but even the full name doesn’t explain what ERP is or what is does. To understand that you need to take a step back and think of all the various processes that are essential to running a business, this includes inventory and order management, accounting, human resources, customer relationship management (CRM), and beyond. At a basic level, ERP software integrates these various functions into one complete system to streamline processes and information across the entire organization.

Based on a review of the ERP literature, there are five major business risks associated with the implementation of ERP systems: the lack of alignment of the new information system and business processes; the possible loss of control due to decentralization of decision making; risks associated with project complexity; the potential lack of in house skills; and users’ resistance.

My recommendation is that we develop a new ERP application using in house resources familiar with the company and its systems. The three primary criteria I used in determining how to upgrade the system were, One, we have enough programmers on staff to develop a new ERP system. Two the board of directors has allocated a fixed amount of money for the project. And finally our current IT staff has done an excellent job maintain our current ERP system.

These three criteria are important because, we have the resources here why not use them this would save us time and money. We have a fixed amount of money we need to make use of what we have and get it right the first time, what better way than with our own people.

Yes I know with an off the shelf ERP solution we know it works, it would more than likely be more cost efficient, but it will not meet all our needs and will not be customized...