Cis 511 Midterm Exam

2192 Words9 Pages
Mid Term Exam Name Instructor Enterprise Resource Planning Date Question 1: Advantages, Disadvantages, and Lessons Learned Research a company that has implemented an ERP system. Please outline the advantages, disadvantages, and lessons learned. Enterprise Resource Planning (ERP) systems have transformed the way organizations are doing business. By integrating business processes, companies share common data and practices across the enterprise and produce and access information in a real-time environment. Benefits from an ERP implementation include expense reduction and improved customer service, often providing a competitive edge. Despite these benefits, some companies have had serious issues implementing ERP systems, the worst case scenario, FoxMeyer Drugs. FoxMeyer Drugs was a $5 billion company and the nation's fourth largest distributor of pharmaceuticals. In a very competitive industry, FoxMeyer’s mainframe systems were becoming inadequate for their growing volume of business. With an estimated annual savings of $40-$50 million dollars, the $64 million dollar Delta III project began in 1993, their goal, to use technology to increase their efficiency. After considerable research and product evaluation, FoxMeyer chose SAP R/3 and Pinnacle’s warehouse-automation. Andersen Consulting was chosen implement and integrate the two systems (Scott, 1999). There are always risks involved when implementing new technologies. A phased implementation would have been less risky and would have given the implementation team a chance to test transactions more thoroughly. FoxMeyer should have realized the risk in adopting R/3 and negotiated with the consultants to share the project risks by tying their compensation to project results (Ramírez Arias, 1999). According to Christopher Cole, chief operating officer at Pinnacle, the FoxMeyer mess was "not a failure of

More about Cis 511 Midterm Exam

Open Document