Enterprise Resource Planning (ERP)- These systems break from the Assets=L+E scheme. ERP systems do not have the preparation of financial statements as their primary goal. Many ERP vendors stress an objective of inputting data only once and using it to generate various views. ERP vendors stress the process focus of their products. The software can span across functional borders, enabling integration of data and information flows. ERP systems can also support a variety of tasks including supply chain management, inventory management, logistics, human resource manganement, finance, accounting, manufacturing planning, sales, and distribution. However, these systems are often inflexible and impose certain rules and processes on the organization. Successfully implementing these systems is often difficult and costly. Many approaches have been advanced to solve business problems with only limited success. ERP provides some benefit, but has only provided marginal success. As a result, many people are less eager to try something new. They seem convinced that nothing can fix their problems and they resist future changes to protect themselves from further frustration and exhaustion. The basic question in designing ERP is should the organization change the software or the process to match the software? ERP advantages- one vendor solution, viability, broader offering. Disadvantages- time and diversity. One-vendor solution- this is viewed as a one stop shop approach. It typically allows the user to contact and communicate with just one source. Viability- the traditional ERP firms are more established and score higher on the viability scales. When an anticipated market consoldation occurs, these companies are more likely to bode well through this consolidation. Broader offering- Many organizations that are buying Ginancials solutions today may have the need for additional products (HR, Procurement, Order Entry, Manufacturing) down t...
