Enterprise Resource Planning

Ignatius Wilhelm Ferreira

71361618

MBA736-6

TMA 3

Chapter 1

1. Introduction

In Enterprise Resource Planning (ERP) systems, success takes on a special urgency since the costs and risks of these massive technology investments rival their potential payoffs. Failures of ERP system implementation projects have been known to lead to organizational bankruptcy (Markus & Tanis, 2000). See Harvard guidelines on when to use ‘and’ and when to use ‘&’

ERP systems are commercial software packages that enable the integration of transactions-oriented data and business processes throughout an organization. From a base in manufacturing and financial systems, ERP systems may eventually allow for integration of inter-organizational supply chains (Markus & Tanis, 2000). Because these systems touch so many aspects of a company’s internal and external operations, their successful deployment and use are critical to organizational performance and survival.

Senior executives in Mondi Packaging South Africa want to know what the return on investment in ERP is and the role it will have on improved business performance. Users have become increasingly unhappy with the system, and management wants an independent assessment to determine whether they have chosen the right ERP system. (MPSA Minutes of Meeting 2007/03/16) source not listed

The purpose of this chapter is to introduce ERP and the effect it has on business competitiveness within Packaging South Africa. This chapter starts with an overview of the business environment of Mondi Packaging South Africa and then the role of ERP.

1.2 Background to the Problem

ERP software groups all traditional company management functions (finance, sales, manufacturing, human resources, etc.) into a coherent, integrated system. The integration of so many management aspects signifies that a sophisticated level of planning is required for an ERP implementation. ERP systems are designed to ease...