ERP systems integrate a company’s business activities into a single environment based on an integrated database that is shared by different departments. ERP systems have been seen as the most vital development in the corporate use of information technology since the early 1990s (Kumar, Sharma, and Malik, 2012).
What were systems like before the introduction of ERP systems?
The systems mainly relied on the traditional method information management which was inefficient. Information managers had to struggle with great frustration, for instance, information systems that were not compatible and operating practices that were inconsistent. The introduction of ERP helped in the integration of all information including financial, human resource, accounting, and supply chain information.
What were the problems that they expected ERP system to solve?
ERP was expected to solve many problems that were common in companies. They include; the frustrations that the mangers had to go through in information management due to the incompatibility of information systems within organizations. They expected ERP to help in the integration of all information within organizations so as to ensure easy retrieval.
What are some of the problems that companies might discover about implementing ERP systems?
The technical challenges that come with rolling out the ERP system are some of the hurdles that companies might encounter in the implementation of the system. Organizations that are interested in implementing the systems might discover challenges of reconciling the technological imperatives that come with the system and using a lot of resources (Davenport, 1998).
Do you think that Michael Porter might be worried about your company adopting a single company’s ERP?
Michael Porter might not be worried about my company implementing a single ERP because of the many benefits of the project. ERP comes with specialized packages for supply chain management, sales force automation, and automated data collection which allows a company to meet its exact needs and expectations unlike it was with the traditional method of information management. They allow for integration of supply chains of different organizations because they affect many aspects of company operations (Markus, Axline, Petrie, and Tanis, 2000). Oracle presents an appropriate cost, in comparison to others, thus brings success. Some savings can be realized when the project is implemented because Oracle agrees to take responsibility for any upgrades and control over the project thus cost cutting.
Davenport, T. (1998), Putting the enterprise into the enterprise system, Harvard business review, 120-131.
Kumar, A., Sharma, V., & Malik, P. (2012). ERP Involves the Seamless Integration in Educational Sector. International Transactions in Applied Sciences, 4(2), 219-230.
Markus, M, Axline, S., Petrie, D., & Tanis, S. C. (2000). Learning from adopters’ experiences with ERP: problems encountered and success achieved. Journal of Information Technology (Routledge, Ltd.), 15(4), 245-265.