Q: ERP projects are ecxpensive and risky. Why did PEL decide to embark on an ERP implementation project?
Since the turn of 21st century, as the modern technology becomes enormously developed, there has been another development of IT-driven organizational transformation. Old legacy systems are gradually replaced by newly developed more enterprise-wide suites of integrated systems which is known as Enterprise Resource Planning (ERP) systems. The idea of totally integrated super-system as an ERP system was initiated 30 years ago, but due to some constraints, it was impossible to be real in practical. However, ERP systems provide fast, reliable, integrated enterprise-wide information architecture for a business replacing legacy system that is expensive to maintain.
Two-tier ERP software and hardware lets companies run the equivalent of two systems at once: one at the corporate level and one at division or subsidiary level. Both will have an independent control and the main function of two-tier ERP software is to manage across the organization. Since these smaller company’s processes and workflows are not tied to the main company’s processes and workflows, they can respond to local business requirements in multiple locations.
The era of newly developed E-commerce attracts the corporations whether it is new or existing ones. The most important advantage is that systems are integrated as one unit. In mid-1990s, the Internet gave businesses high hopes of developing new business models finding it to be a more convenient venue for purchasing and selling products. ERP systems, part of the e-commerce development, can provide integration at various levels: - * External systems integration * Systems integration * Application process integration, and * Data
