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ERP Meet 6 Objective of ERP Adoption

The document discusses several key objectives and considerations for ERP adoption: 1) ERP systems are used for both transactional and strategic purposes, such as enabling sales growth, reducing production times, and improving customer service in alignment with business strategies. 2) ERP objectives can vary depending on the type of adopting organization and include both benefits and performance measures. 3) ERP projects are large undertakings that require significant financial and human resources, presenting challenges and risks to adopting organizations. It can be difficult to justify costs and show business value.

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renna magdalena
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61 views15 pages

ERP Meet 6 Objective of ERP Adoption

The document discusses several key objectives and considerations for ERP adoption: 1) ERP systems are used for both transactional and strategic purposes, such as enabling sales growth, reducing production times, and improving customer service in alignment with business strategies. 2) ERP objectives can vary depending on the type of adopting organization and include both benefits and performance measures. 3) ERP projects are large undertakings that require significant financial and human resources, presenting challenges and risks to adopting organizations. It can be difficult to justify costs and show business value.

Uploaded by

renna magdalena
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Objectives

of ERP
adoption
추석
RENNA MAGDALENA
ERP systems are used for

not only
transactional purposes,
but also for strategic
ones!
“Enabling sales growth, reducing production lead times, and
improving customer services”
aligning ERP
features with the business
strategies of ERP adopting firms.
The fit between ERP systems and business
strategies is very important to achieving gains in
organizational performance
(Somers and Nelson 2003)
ERP objectives
at different
Types of benefits and
performance measures
ERP is Expensive
Enterprisewide projects are so costly and
complicated, they may become a major challenge
and even a burden for the ERP adopting firms in
terms of financial and human resources, and
business risks.

“how do you justify the costs for such a project?


Would my SBU get more sales orders and
revenues with this ERP?”
ERP is Expensive
The difficulty is compounded by the elusiveness
of the business value of IT and ERP.

This is a mind-boggling phenomenon termed the


IT productivity paradox by
economists such as Steven Roach, and
academics specializing in IT adoption impacts.
ERP product aud veudor
selectiou
ERP vendor
Some are international vendors which target large
enterprises, while some are local vendors
producing ERP packages for domestic and regional
markets
(e.g.
● Kingdee ERP products of Shenzhen, China-based
Kingdee International Software Group Limited,
● Data Systems ERP products of Taiwan-based Ding-Sun
Consulting, and
● Impact ERP products of Bangalore, India-based Netsoft
Solutions Limited).
ERP vendor
The foremost step for a successful ERP journey is
to select a package that fits the ERP adopting
firm's requirements.
Selecting a suitable ERP vendor is as important,
since a qualified vendor is expected to provide
support on an on-going basis throughout the
lifespan of an ERP system.
● In practice, clients evaluating vendors often examine the
vendors' reputation, financial strength, technical
capabilities, and corporate vision and direction.
● Partnering with a strong vendor would be essential to the
success of implementing and operating the installed
systems
ERP strategy and
implementation
methodology
ERP Strategy

Organizations planning to implement an ERP system


must decide the strategies for this highly complex and
costly enterprise-wide endeavour.

Lacking a well thought out strategy for ERP adoption and


business changes may result in compromised project
outcomes and even disasters.

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