Risks and Costs of ERPs. Benefits of ERPs. Hardware Software Training: – technical – business processes Data conversion Interfaces and customization Professional services Reassigned employees Software maintenance Software upgrades Reduced inventory investment Improved asset management (e.g., cash and receivables) Improved decision-making Resolved data redundancy and integrity problems Increased flexibility and responsiveness Improved customer service and satisfaction Global and supply chain integration Risks and Benefits of Enterprise Systems
Risks and Costs of ERPs.Benefits of ERPs. Hardware Software
Training: technical business processes Data conversion Interfaces
and customization Professional services Reassigned employees
Software maintenance Software upgradesReduced inventory
investmentImproved asset management (e.g., cash and receivables)
Improved decision-making Resolved data redundancy and integrity
problems Increased flexibility and responsiveness Improved customer
service and satisfaction Global and supply chain integrationRisks
and Benefits of Enterprise Systems
SELECTING A SOFTWARE PACKAGEWhen is a New AIS Needed?1. Late
payment of vendor invoices, which means late fees and lost cash
discounts.2. Late deliveries to customers.3. Growth in inventories,
accompanied by an increase in stock outs.4. Slowdown in inventory
turnover.5. Increased time in collecting on receivables.6. Late
periodic reports.7. Increasing length of time to close out books at
the end of a period.8. Managers concerned about cash flows and
financial picture of organization.9. Manager complaints about lack
of information needed for decision-making.10. Owner worries about
cash flows, taxes, and profitability.
