Enterprise Resource Planning Systems

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Enterprise Resource Planning Systems

  1. 1. Cambridge University Press 0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk Daniel E. O’Leary Frontmatter More information Enterprise Resource Planning Systems Systems, Life Cycle, Electronic Commerce, and Risk Enterprise resource planning (ERP) systems are powerful software packages that enable businesses to integrate a variety of disparate functions. In particu- lar, ERP systems can provide the foundation for a wide range of e-commerce– based processes, including web-based ordering and order tracing, inventory management, and built-to-order goods. This book examines the pros and cons of ERP systems, explains how they work, and highlights their role at the heart of e-commerce. The author begins by explaining the background of ERP systems and goes on to discuss specific systems, such as SAP, and their capabilities. He then focuses on the ERP life cycle, from the decision on whether or not to adopt an ERP system to the time when the system goes “live.” After covering the use of ERP in e-commerce, he concludes by discussing the risks associated with the adoption of ERP systems. The book contains several detailed case studies and will be an invaluable guide to managers and consultants working with ERP systems. It also will be a useful reference for MBA students taking courses in information systems management. Daniel O’Leary received his Ph.D. from Case Western Reserve University and his MBA from the University of Michigan. He is a Professor in the Mar- shall School of Business at the University of Southern California. He has published over 120 papers in a variety of computer science, information sys- tems, and management science journals. © Cambridge University Press www.cambridge.org
  2. 2. Cambridge University Press 0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk Daniel E. O’Leary Frontmatter More information Enterprise Resource Planning Systems Systems, Life Cycle, Electronic Commerce, and Risk DANIEL E. O’LEARY University of Southern California © Cambridge University Press www.cambridge.org
  3. 3. Cambridge University Press 0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk Daniel E. O’Leary Frontmatter More information published by the press syndicate of the university of cambridge The Pitt Building, Trumpington Street, Cambridge, United Kingdom cambridge university press The Edinburgh Building, Cambridge CB2 2RU, UK www.cup.cam.ac.uk 40 West 20th Street, New York, NY 10011-4211, USA www.cup.org 10 Stamford Road, Oakleigh, Melbourne 3166, Australia Ruiz de Alarcón 13, 28014 Madrid, Spain © Daniel E. O’Leary 2000 This book is in copyright. Subject to statutory exception and to the provisions of relevant collective licensing agreements, no reproduction of any part may take place without the written permission of Cambridge University Press. First published 2000 Printed in the United States of America Typeface Times 10/13 pt. System AMS-TEX [FH] A catalog record for this book is available from the British Library Library of Congress Cataloging in Publication Data O’Leary, Daniel Edmund. Enterprise resource planning systems : systems, life cycle, electronic commerce, and risk / Daniel E. O’Leary. p. cm. ISBN 0-521-79152-9 (hb) 1. Production management. 2. Management information systems. 3. Business planning. 4. Electronic commerce. I. Title. TS155.O385 2000 658.8 4 – dc21 00-027554 ISBN 0 521 79152 9 hardback © Cambridge University Press www.cambridge.org
  4. 4. Cambridge University Press 0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk Daniel E. O’Leary Frontmatter More information Contents Acknowledgments page vii part one. introduction and background 1 Introduction 3 2 Systems and Technology Background 13 part two. erp systems 3 ERP Systems Background 27 Appendix 3-1 Geneva Steel: Changing the Way Business Is Done 38 4 ERP Data Input 49 5 ERP Output Capabilities 61 Appendix 5-1 Quantum’s Virtual Data Warehouse 68 6 Technology Enabled versus Clean Slate Reengineering 73 part three. erp life cycle 7 Deciding to Go ERP 89 Appendix 7-1 ERP Choice – In-House or Outsourced 100 8 Choosing an ERP System 102 Appendix 8-1 Chesapeake Display and Packaging 113 Appendix 8-2 A CFO’s Inquiry 115 9 Designing ERP Systems: Should Business Processes or ERP Software Be Changed? 117 Appendix 9-1 Microsoft’s SAP Implementation 130 10 Designing ERP Systems: Choosing Standard Models, Artifacts, and Processes 141 11 Implementing ERP Systems: Big Bang versus Phased 151 Appendix 11-1 Quantum, I: Requirements, System Choice, and Implementation Approach 162 v © Cambridge University Press www.cambridge.org
  5. 5. Cambridge University Press 0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk Daniel E. O’Leary Frontmatter More information vi Contents Appendix 11-2 Quantum, II: Going with Big Bang 167 Appendix 11-3 Quantum, III: Collaboration and Competition 171 12 After Going Live 172 Appendix 12-1 A Case Study of XYZ Company: How Should We Evaluate the ERP Project? 183 Appendix 12-2 Deloitte Consulting Post-Implementation Checklist 184 13 Training 186 part four. electronic commerce and risk 14 ERP and Electronic Commerce 195 Appendix 14-1 Implementing J.D. Edwards OneWorld at the University of Southern California’s Leventhal School: An Interview with Professor Les Porter 206 15 ERP Risk: Success and Failure Factors 213 Index 225 © Cambridge University Press www.cambridge.org
  6. 6. Cambridge University Press 0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic Commerce, and Risk Daniel E. O’Leary Frontmatter More information Acknowledgments I have a number of acknowledgments. First, I would like to thank firms for doing so many interesting applications and implementations of ERP and mak- ing their findings known so that others can benefit from their insights. I would also like to thank the students for their curiosity about ERP, which ultimately pushed my interest. I would like to thank Sabine Hirt, Robert Plant, and the anonymous referees for their comments on earlier versions of this book. I would like to thank my wife, Lynn, and my kids – Danny, Lauren, and Kellyn – for their patience while I completed this manuscript and the revisions. vii © Cambridge University Press www.cambridge.org

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