Questions for Discussion

Questions for Discussion

1. Use online library database to identify articles in trade publications that provide case studies of ERP implementations. These articles may provide some insight into each of these questions:

a. How widespread is the use of ERP across certain industries?

b. What are the benefits reported from implementing ERP ?

c. What are its limitations?

Enterprise Resource Planning (ERP) systems are the software tools used to manage enterprise data. ERP systems help organizations deal with the supply chain, receiving, inventory management, customer order management, production planning, shipping, accounting, human resource management, and other business functions (Somers and Nelson, 2003).

In the past several years, many organizations have initiated ERP systems, using such packages as SAP, Peoplesoft, Oracle etc. The use of ERP systems is now widespread. For example, SAP, the largest market share of ERP systems, is used by more than 60 percent of multinational corporations (Bowley, 1998). However, large companies are not the only ones impacted by ERP systems. Small and medium sized companies make extensive use of EPR systems (Foley and Stein, 1997).

The implementation of ERP systems influences many companies because of the benefits provided by ERP systems. From the business standpoint, an ERP system achieves a number of objectives, including maximizing throughout of information, minimizing response time to customers and suppliers, pushing decision making down to the lowest appropriate level, and providing timely information to decision makers. ERP systems are designed to provide business benefits in sales and distribution, manufacturing, coting, field service, and accounting (Sumner, 2005).

Implementing an ERP system in a new business can be very effective. Implementing the same system in an older business can be very difficult. All employees must be trained, and there will be significant down time as the business switches all applications...