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It Is Suitability For Large Companies

This document discusses the key characteristics and features of ERP systems. It provides examples of both a successful ERP implementation at Nestle as well as an unsuccessful implementation at King Saud University in Saudi Arabia. Specifically, [1] Nestle saw standardized processes and improved competitiveness after implementing SAP globally, while [2] the ERP project at KSU called MADAR failed to meet objectives due to a lack of top management commitment, change management, business process change, and IT infrastructure issues. The document also compares module offerings between SAP Business One, an ERP for smaller businesses, and Pronto software, finding similarities in customer service, procurement, and manufacturing management modules.

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159 views3 pages

It Is Suitability For Large Companies

This document discusses the key characteristics and features of ERP systems. It provides examples of both a successful ERP implementation at Nestle as well as an unsuccessful implementation at King Saud University in Saudi Arabia. Specifically, [1] Nestle saw standardized processes and improved competitiveness after implementing SAP globally, while [2] the ERP project at KSU called MADAR failed to meet objectives due to a lack of top management commitment, change management, business process change, and IT infrastructure issues. The document also compares module offerings between SAP Business One, an ERP for smaller businesses, and Pronto software, finding similarities in customer service, procurement, and manufacturing management modules.

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Asma 12
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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ERP Exercises(ch2)

1. What are the main characteristics of an ERP system? What are some newly
developed features of ERP systems?
The most significant characteristics of an ERP systems are as follows.

1. It is suitability for large companies


SAP ERP was developed for very large companies in the 1980s and 1990s. Today's
ERP systems cater for a variety of industries, including manufacturing, oil, airlines,
and consulting. Increased computing speeds made it possible for large companies to
have integrated information systems .

2. High cost
The costs of an ERP solution with its multiple modules are time consuming and costs
millions of dollars. Out-of-hand budgets and over consumption of time is the reason
for most ERP implementations failures. Even with successful implementation in one
location might not necessarily mean successful implementation across the company.

3. Automation of data updates


The nicest thing about an integrated information system like an ERP is that
information updates are propagated without human intervention across all linked
fields and columns in the central database.

4. Applicability of best practices


SAP created models for how specific industries' business processes should be
managed based on its accumulated expertise and experience with ERP system
installations. As a result, it is now capable of introducing and even correcting parts of
a company's business practices with those of potential practices.

The new Features of ERP Systems:


ERP modules for small businesses, such as those with less than 500 workers, have
been developed by firms building ERP systems. They've also created advanced
reporting tools that can produce considerably more accurate and quicker projections.
Another novel feature of recent ERP systems is pay-per-use, i.e., subscription-based
use of ERP systems through browsers, which eliminates the need for hardware and
software acquisition but leaves the expense of software configuration and staff
training intact .
2. Much has been written in the news media about ERP systems, both in print
and online. Using library resources or the Internet, report on one company’s
positive experience with implementing an ERP system, and on another
company’s disappointing experience in Saudi Arabia.

• The successful business case for implementing an ERP system can be seen
by examining any one of three Nestle stories. Nestle SA is the and. In 2000,
Nestle SA, which is the parent company of the candy-making giant and is
headquartered in Switzerland, decided to roll out an ERP system to its
230,000 employees in 80 countries around the world. It signed a $200 million
contract with SAP. In addition to this sum, Nestle SA also committed to an
additional $80 million to be spent on consulting, maintenance, and upgrades.
Executives at Nestle SA realized that the company needed to standardize its
business processes if it wanted to be competitive. The rollout was scheduled
to take three years for Nestle SA's largest sites with the others to follow.
Included in the implementation were the mySAP.com financials, accounts
payable, accounts receivable, planning, production management,
procurement, direct procurement, supply-chain, demand planning, fulfillment,
and business intelligence modules.

• MADAR is an ERP Project developed in King Saud University (KSU). In 2007,


KSU decided to implement the financial, human communications, inventory
control, warehouse, and employee service in this MADAR project" (Al-Nafjan
and Al-Mudimigh,2003). However, the project was a failure as it did not
meetits objectives. According to the research carried out by Al-Shamlan and
AlMudimigh (2011 a, b) four factors of lack of top management commitment,
lack of change management, failure in business process change and lack of
IT infrastructure led to ERP implementation failure of.
3. Some of examples shown in this chapter are from a traditional ERP system,
SAP. Consider some smaller ERP systems. Look on the Internet at Business
One by SAP, and an additional smaller system, such as Pronto software or
Exact software. Compare two of the systems and list the similarities between
the module-type offerings. Are there any clear differences between them?

• Business One by SAP


* More responsiveness to changes in market interest
* Increased stock with more notable figure exactness and market permeability
* Reduced operational and transportation expenses
* Increased warehouse efficiency through the use of robotized forms and tighter controls.

• Pronto Software
* Management of Customer Service
* Procurement Administration
* Product Development and commercialization
* Manufacturing Flow Management

4. From UQU electronic library, obtain a copy of the article, “Management


Based Critical Success Factors in the Implementation of Enterprise Resource
Planning Systems,” by Joseph Bradley (International Journal of Accounting
Information Systems, Volume 9, no. 3, pages 175-200, September 2008). Choose
and define five factors you think are most important.

• The amount of integration of ERP planning and business planning is


connected to the success of implementation projects.

• The success of an ERP installation project is positively connected to the


organization of the project under the supervision of a project manager whose
primary responsibilities are the project.

• A reporting structure in which the project manager reports to the senior


manager of the business unit is favorably connected to the success of
implementation projects.

• The use of an ERP consultant for advice during the implementation project is
favorably connected to the success of the project.

• The efficacy of management in decreasing user resistance to change is


connected to implementation success.

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