Sunday, June 22, 2008

Book Summary (Serkan Kocak)

Why ERP?


As it can be understood from the name book is about ERP systems but it is about just these systems work, although there is that. The management and implementation of a system with its advantages and disadvantages are stated. However, one of the main points that are highlighted is the importance of decision to implement an ERP or not.

Billy who is a plant manager of furniture plant, who is aware of every process, is charged with a duty of deciding to implement an ERP system or not. Billy’s boss thought to buy his brother’s factory which seems to be similar but a different kind of furniture plant. Although targeted market and process of other plant is different, their ERP system is suggested for Billy’s plant. And also the likelihood of buying the other plant forces them to have a common system to control both plants. Therefore Billy forced to search ERP systems their benefits and drawbacks, implementation and management of these systems.

A professor is helping Billy about ERP and also Billy went to seminars to learn more about ERPs. Billy learned lots of things about ERP systems.

He had learned the usage areas of ERP systems (accounting, sales, finance…), the importance of an ERP system to manage multi-plant companies, differences and similarities between MRP and ERP systems. Billy saw lots of usage areas of ERP systems with their good results. Beside these the most important thing that he learned during this process is to decide to implement an ERP system or not.

Before implementing an ERP system the business characteristics should be analyzed in detail in order to find the best fitted ERP or to decide not to implement. And the usage of ERP system by a competitor or by a brother company can not be a reason to decide to have ERP. And lots of analyses such as SWOT, cost, feasibility, GAP… should be done just before decision.

As a result, Billy who is smart enough to understand their plant is not ready to such a system refused to have ERP. And he resigned from the company and become an ERP consultant because his boss did not listened to him and decided to implement ERP. He is not succeeding with his ERP system but Billy becomes an experienced consultant who knows ERP can be a best solution if it fits to company.