Tuesday, June 24, 2008

Day 3 Article Learnings - Can Altay

* We always say that ERP is only a tool and it does not necessarily improve your business, but it may require for companies to change or reengineer their business processes before implementing it. However, if there is lack of control, problems will definitely arise.

* We need to find a match between the ERP and system processes through customizing both the system and the organization.

* Technical customization: Changing the system à this includes module selection, table configuration and code modification. As you move towards code modification, the cost increases.

* Process customization: Changes in tasks and resources, incremental changes in relationships, rethinking and radical redesign. As you make more radical changes, customization increases.

* Determine where your business fits within these customization options and make your decision accordingly (matrix, 3 levels on process change capability, 3 levels on technical change capability-Tables II,III and IV in Luo and Strong).

* Volkoff article talks about the difficulties in implementing different pricing strategies to the ERP system and hence the difficulties faced by the firm in billing its customers. However, it also mentions a culture that has no discipline, no control and no desire to change at all. With these in mind, they would like to implement ERP and find solutions for the pricing module. In my opinion, it is a mistake to implement ERP in such an organizational culture.

No comments: