| Introduction | | | | parts of software purchases of this magnitude. What |
| Enterprise Resource Planning, or ERP, tools are not | | | | if a firm dissolves or is sold to another? What |
| magic pills. Just like any other tool used by an | | | | happens to the service contracts then? I'm sure that |
| organization, careful thought must come before a | | | | in most situations the contracts would be honored to |
| purchase decision, and foresight must be used, else | | | | the largest extent possible. The fear and uncertainty |
| the wrong solution may be chosen. Many things must | | | | of such things can keep buyers from spending their |
| be taken into consideration when choosing and ERP | | | | money. Personally, I would not want to make such a |
| solution. | | | | large purchase decision if I was not sure the |
| ERP | | | | software firm would remain solvent. |
| "It attempts to integrate all departments and | | | | Another concern is the amount of current offerings. |
| functions across a company onto a single computer | | | | These large software solutions may be great for |
| system that can serve all those different | | | | some, but may not meet the needs of others. Who |
| department's particular needs," (CIO, 2003). To me, | | | | would want to spend a quarter of a million dollars on |
| this means communication across an organization. If a | | | | something only to use half of its features? Not many, |
| company cannot successfully communicate within | | | | I think. Completely custom solutions are expensive, |
| itself, how can it communicate with the outside world | | | | and products from smaller firms that may more |
| and make any sense? I have seen employees of the | | | | closely meet the needs of the company in question |
| same company use differing systems to give | | | | may go out of business in two years. All of this and |
| customers information. This information did not | | | | more can give someone pause when considering |
| typically agree. How does that look from the outside? | | | | decisions like this. |
| How does that reflect on the company? I do not | | | | Solutions |
| think it reflects well, thus the need for a standard | | | | Even though there are concerns about ERP |
| language, if you will, across the company. | | | | implementations, there is hope. A manager, or who |
| Even if an entire company uses the same packages | | | | ever will be in charge of the purchase decision, |
| of software, as I have seen many times, that | | | | merely needs to ask very pointed questions and |
| doesn't mean there is an ERP system implemented. If | | | | show more than a fair share of foresight. When |
| a medium sized company has a networked database | | | | considering and ERP solution, some questions that |
| that all staff can use, that doesn't mean ERP is in | | | | should be asked include: |
| place. All it means is that there is a database in place, | | | | - Does this product truly meet our needs? |
| probably set up on some type of client-server | | | | - What costs will be associated with training or |
| architecture. To be a truly integrated system, there | | | | operational reconfiguration? |
| must be one solution, be it software only or a | | | | - Does the direction and purpose of this software |
| combination of hardware and software, and the | | | | firm, and their solutions, match with the mission and |
| entire organization must have it. | | | | direction of our organization? |
| An Interesting Example | | | | - Will this solution aid us, or rule us? |
| Dell Computer Corporation, one of the world's leading | | | | Not only will questions like this aid in any purchasing |
| manufacturers of personal computers, has an | | | | decisions, but it may help to identify other needs in |
| interesting solution to ERP. Dell purchased a supply | | | | an organization. For example, when asking these |
| chain management (SCM) solution from i2, one of the | | | | questions, it may become apparent to an organization |
| leading producers of SCM solutions. I mention this not | | | | that they do not truly need an ERP solution, but an |
| because it is a clear-cut case of successful ERP | | | | SCM solution. |
| implementation, but because Dell has been an | | | | Conclusion |
| industry leader for quite some time and has | | | | Finding and implementing an ERP solution is not a |
| revolutionized the way consumers (private and | | | | mission to be taken lightly. There is much to consider |
| corporate) purchase computers. | | | | when searching for something that will meet the |
| This solution by i2 connects Dell together within itself, | | | | needs of the organization and be bearable at the |
| and also connects the company to parts suppliers. | | | | same time. |
| Everything is done automatically from inventory to | | | | Software trends are also to be considered. Over the |
| ordering and communication. Because of this data | | | | last twenty years, computing has become more and |
| management solution, Dell managed to cut printed | | | | more integrated. The result of this has been complex |
| orders by ninety percent, and, as a direct result, the | | | | solutions such as ERP and SCM. The next step, in my |
| staff had more time to spend helping customers. | | | | opinion, is further integration, of ERP and SCM |
| Less time was spent in communication and data | | | | specifically. That is the real reason I mentioned Dell |
| gathering because there was little need to do so. | | | | Computers. It is not because their supply chain is |
| This system became extremely efficient for them, | | | | well-managed, but because that functionality has |
| both within the organization and out of it (i2, 2002). | | | | melted into the area of enterprise resource planning. I |
| ERP Concerns | | | | believe that the trend will continue in that direction. |
| Many people are nervous about making large | | | | Systems will become more integrated, and the line |
| purchase decisions, and rightfully so. Who would want | | | | between ERP and SCM will blur until no one sees a |
| to make a $300,000 mistake? That amount was | | | | line. I believe this is the future of integrated solutions, |
| pulled out of thin air, but the point is real. Wasted | | | | and companies should take that into consideration |
| money, wasted training, and wasted time can ruin | | | | when solutions purchasing decisions. |
| careers. No one wants that to happen. | | | | References: |
| With all of the large corporation mergers that have | | | | CIO (Sept. 2003). "Enterprise Resource Planning - |
| taken place in the recent years, fears run high. What | | | | Executive Summaries". Retrieved January 30, 2005i2 |
| about the maintenance of merger-affected software | | | | (2002). "Configuring a 500 Percent ROI for Dell". |
| products? Service and product upgrades are integral | | | | |