key points from the book

WHY ERP?

Key points

A company’s requirements in terms of software to support business operations might change over time even though the business does not grow extensively.
The software used (MRP or ERP) can be customized also by in house developers to keep track of the specific needs of a company
Flexibility in ERP systems is essential
ERP solutions target all kinds of businesses, there are industry specific solutions to lower customization
SAP is more hierarchical and tries to centralize the decision making process
Oracle has a separate DB and is more flexible in the modules
The fact that another company has already installed SAP does not necessarily mean that you’ll also need it. This fact can only make you aware that there is an ERP tool. However prior to making the decision of buying it the situation must be analyzed quickly
To provide healthy operations and service information must be consistent and available
It is possible to integrate SAP systems at different plants and locations, there is also the option of implementing different systems but consolidating information when necessary
Reasons for implementing ERP Systems are; the want to integrate the legacy systems, to improve communication, the need for change to exploit business
Process details, workflows are defined in SAP and the actions, functions are defined.
There are 8000 options if all the modules of SAP are implemented. The management has to decide which ones to use and which ones not to use
The management has to be involved in many aspects of the ERP implementation project
It is very likely that employees feel threatened by a system that facilitates the operations and they become afraid of loosing their jobs
Data entry is an important issue
ASAP is the accelerated version of SAP, accelerated meaning the installation is quicker. It is even possible to use it without outside help
Consultants are very important in the ERP business
The ASAP consists of five steps; Project preparation phase, business blueprint, realization, final preparation, go live and support
The modules in SAP are linked
Procurement (MRP) is also included in SAP
Database servers, application servers, presentation (user computers) are the hardware requirements of SAP. The size depends on the system.
The higher your ERP system is customized the more difficult it becomes to update it with a newer version
The whole process of implementing an ERP system must be planned very carefully
There are improvements in operations, inventory holding costs etc, but on the other hand hardware costs increase after the implementation of an ERP system