An Overview of Enterprise Resource Planning

Topics: Enterprise resource planning, Supply chain management, Management Pages: 3 (775 words) Published: August 11, 2011
Enterprise Resources Planning (ERP) systems are software packages that can be used for the core systems necessary to support enterprise systems. The best-selling ERP is SAP Such ERP modules consist of Sales and Distribution, Material Managements, Financial Accounting, and Controlling and Profitability Analysis.

In the words of Rockford Consulting (and many other firms), the single issue of ERP is failure to implement it. There are five known ways of how to constitute: not making the promised return on investment, extending the implementation schedule and start-up date inordinately, going over budget by unconscionable variances, grinding the organization to a crawl pace, or the severest of all consequences, and ceasing production and/or not delivering orders to your customers. 

Rockford has twelve “cardinal sins” regarding ERP Implementation: Lack of Top Management Commitment: Inadequate Requirements Definition; Poor Package Selection; Inadequate Resources; Resistance to Change/Lack of Buy-in; miscalculation of Time and Effort; Misfit of Application Software with Business Processes; Unrealistic Expectation of Benefits and ROI; Inadequate Training and Education; Poor Project Design and Management; Poor Communications; and Ill-advised Cost Cutting.

Today, companies define "success" when it comes to an ERP implementation or upgrade. This is mostly due to well how they have planned for contingencies, set up reasonable expectations, and created lines of communication between the CEO, front-line users, and everyone else in between. For example, Au Bon Pain (a chain of restaurants) used to utilize “legacy systems” and “SAT ERP”, but currently uses a unified IT platform that provides such things as optimized performance, enhanced visibility with real-time data capture, Increased productivity, and accelerated financial closings.

The environments in which IT professionals are striving on projects (similar to the one at Au Bon Pain) is disconcerting: Most...
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