Accg250
Question 1
Introduction
Whether or not the upgrade our enterprise resource planning (ERP) system is an important decision for our firm. Because of the previous ERP system is not efficiency, an upgrading would be necessary to improve the system efficiency. Building new functionalities, treating upgrading as a business project, considering all costs, testing the new system before actually use and training employees are the 5 issues within the upgrading process.
Body
Treat the upgrade like a new project. There is a common mistakes are allocate upgrade into a technical maintenance. Thus, limiting project planning time, rushing to implement system changes, and failing to thoroughly test are facets of the upgrade ERP. Taking time to plan the upgrade, do not rush to implement and do necessary test. It is a good component to success.
Build business case on new functionality. System study team can develop new functionalities base on the problem in the previous system and match the requirement from users. Therefore, new functionality would be more adapt the circumstance of this business. Organizations have to stop using cost saving as sole monition and focus on the business gains from new functionality.
Watch for hidden infrastructure costs. (Beatty, R.C., 2008, p.106) The cost of ERP upgrade is not only software and labor-related cost, but also hidden costs exist. Even there is new functionality add to the competitive value of the product, however, it may cost to upgrade some infrastructure hardware to running those new functionalities. This cost cannot be ignored by planning to upgrade ERP. For example, if organizations upgrade from SAP R/3 version 3 to version 4, it cost 87%CPU speed, 72% memory requirements and 33% storage space. It may lead the organization change the computer and storage, which is significant cost more.
Testing is necessary when new system implementing. It is important to test whether or not the new system works well, especially the new
Introduction
Whether or not the upgrade our enterprise resource planning (ERP) system is an important decision for our firm. Because of the previous ERP system is not efficiency, an upgrading would be necessary to improve the system efficiency. Building new functionalities, treating upgrading as a business project, considering all costs, testing the new system before actually use and training employees are the 5 issues within the upgrading process.
Body
Treat the upgrade like a new project. There is a common mistakes are allocate upgrade into a technical maintenance. Thus, limiting project planning time, rushing to implement system changes, and failing to thoroughly test are facets of the upgrade ERP. Taking time to plan the upgrade, do not rush to implement and do necessary test. It is a good component to success.
Build business case on new functionality. System study team can develop new functionalities base on the problem in the previous system and match the requirement from users. Therefore, new functionality would be more adapt the circumstance of this business. Organizations have to stop using cost saving as sole monition and focus on the business gains from new functionality.
Watch for hidden infrastructure costs. (Beatty, R.C., 2008, p.106) The cost of ERP upgrade is not only software and labor-related cost, but also hidden costs exist. Even there is new functionality add to the competitive value of the product, however, it may cost to upgrade some infrastructure hardware to running those new functionalities. This cost cannot be ignored by planning to upgrade ERP. For example, if organizations upgrade from SAP R/3 version 3 to version 4, it cost 87%CPU speed, 72% memory requirements and 33% storage space. It may lead the organization change the computer and storage, which is significant cost more.
Testing is necessary when new system implementing. It is important to test whether or not the new system works well, especially the new