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Enterprise Resource Planning (ERP) systems and their MRP (Material Requirements
Planning) predecessors have been around for almost three decades now. As a result,
many aging implementations, based on outdated technology, are limiting the business
process evolution necessary to any company who wants to thrive and grow amidst the
pressures of globalization and increasingly demanding customers. Conversely manufacturers
demand more value from ERP implementations, not only as their systems age, but
as enterprise applications proliferate, raising questions concerning upgrade, replacement,consolidation and rationalization.
Key Business Value Findings
The chief ERP implementation challenges cited by respondents were associated with the
alignment of business processes with software capabilities. Customization related challenges
arise where software has been adapted to fit the business.Business process redesign challenges arise where processes are
adapted to the software.
Companies
struggle to balance the two amidst costs
associated with upgrades and latent integration
costs where point solutions or
custom applications have been used to
fill the gaps in functionality.
Implications
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