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There are a number of risks that may be associated with ERP implementation Which

ID: 2421396 • Letter: T

Question

There are a number of risks that may be associated with ERP implementation Which of the following was NOT stated as a risk in the chapter? A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system. Implementing companies have found that staff members, employed by ERP consulting firms, do not have sufficient experience in implementing new system Implementing firms fall to select systems that properly support their business activities. ERPs are too large, complex, and generic for them to be well integrated in to most company cultures

Explanation / Answer

A drop in firm performance after implementation because the firm looks and works differently than it did while using a legacy system.

ERP system attempt to integreat all department and functions across a company into a single computer system that can serve all those particular department needs.Its critical for firms to trace oue out the way they are doing buiseness will fit within standard ERP package before the implemention starts.Not supporting of software for one of their important buisness process is the most common reason why companies walk away from millionsdollar of ERP projects.At that time there are two option with companies: one is they can change the business process to accomodate software, which means major changes in long established way of doing buisness second one is they can change important peoples roles and reponsibilities.