1. ERP or Enterprise resource planning. It is basically a management software us
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Question
1.ERP or Enterprise resource planning. It is basically a management software uses for businesses. It is a package of applications which are integrated closely which helps organizations to collect and store, data from various departments. It also helps the organization in managing this data and also in interpreting it. ERP helps in integration various functions of an organization which are mainly sales, HR, purchase, inventory, etc.
ERP is a complete business oriented software, whereas MRP is specific in nature. MRP doesn’t have functions like CRM or financial modules, whereas ERP has them. Since ERP is a package meant for the complete business, it is different from other systems and solutions which are mostly specific in nature.
2.Since VMH is a service organization, and this industry is very project driven and not product centric. Technically ERP systems, are designed for companies which deal with products. Hence, I won’t recommend ERP system for service organization until certain features are taken care of. Like ERP needs be project oriented, and should possess enough flexibility for different organizations to create differentiation. ERP should be built from scratch for service sector, which delivers a different experience. For adoption at VMH, ERP implementation would need management of complex projects. Should take care of various gaps in the delivery system of the organization. Should be customized according to needs of VMH.
3.Major providers of ERP are:
Critical features relevant for VMH:
4.ERP can cost roughly 1,500$ to 4,000 $ per user- one-time cost. Number of users at VMH will determine the price and final cost. So, if 10 users would be using the ERP system at VMH, cost would range from 15000$-40000$.
Benefits of ERP for VMH:
5.Factors to consider when implementing ERP
Explanation / Answer
As you approach the completion of your internship, Bob Reilly informs you that he is very impressed with your work to date and your thorough understanding of the operations at VMH. He wants you to examine a broader issue which has implications across the entire organization. The administrators and managers at VMH are interested in exploring Enterprise Resource Planning (ERP) Systems. They want to know if adopting ERP could be beneficial to VMH. Effective management, i.e., planning and coordination of a wide range of resources is critical to VMH. Bob wants a concise research report for top management at VMH addressing ERP issues relevant to VMH. He has provided a few specific questions for you to answer."
You might want to search the Internet for information regarding ERP systems. There are also many books available regarding ERP systems.
Assignment Questions For Chapter 14
1. Describe ERP. Explain how it is different from other information systems. Meg Willoughby is especially concerned with how ERP compares with MRP.
2. Explain why or why not ERP is appropriate for a service organization such as VMH. Describe what would be involved in the adoption and implementation of an ERP system at VMH.
3. Develop a list of major providers of ERP systems. Visit the websites of three providers and determine which features of their system would be relevant for VMH.
4. Determine the approximate range of the financial investment that VMH would have if they choose to implement ERP. Describe the expected benefits for VMH.
5. Other than financial considerations, describe what other factors the various departments at VMH should consider when determining the suitability of an ERP system.
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