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Unformatted text preview: THE FUTURE OF ERP-SYSTEMS IT-Universitetet, Kbenhavn Efterret, december 2009 4-ugers projekt: The future of ERP-systems Vejleder: John Gtze Udarbejdet af: Kasper Sonnichsen 4-ugers projekt: The future of ERP-systems IT-Universitetet, Kbenhavn, 2009 Kasper Sonnichsen 2 INTRODUCTION From early on the ambition of ERP-systems has been to: 1) integrate all transaction systems within the same system; 2) share common data and practices across entire enterprises, and 3) produce relevant information for decision-making purposes in real-time (Bjrn-Andersen & Johansson 2007). The era of Enterprise Resource Planning (ERP) systems began as early as the 1950s, when the first computers were introduced in organizations (Johansson 2007a). The computers slowly became corporate accounting systems and later the first real ERP-systems tailor made to the individual organizations that were introduced during the 1980s. These early ERP-systems were very often costly to maintain and develop, and were often too expensive especially for small and midsized organizations to implement. The benefits from the above mentioned 3 ERP-systems dogmas have not yet been realized with in small and midsized organizations that continued to use legacy systems and smaller separate IT-systems. Ten years later in the early 1990s the (so-called) second generation ERP-systems appeared. Large organizations were now able to introduce large integrated ERP-systems, from vendors like SAP A/G and Oracle. These ERP-systems were pre-configured to support the business processes of the end-customer organization in a way that was perceived as best practice from the view of the ERP-system vendor. Though these ERP-systems were supposed to be standard packages, they often required comprehensive customization efforts to meet the requirements of the organizations. The implementation project itself was far more expensive than the costs of the software licenses (Bjrn-Andersen & Johansson 2007). The total costs for the implementation of an ERP-system are still today considered a sever hurdle for small and midsized organizations. With this in mind the quest for the next generation ERP-systems has begun. Problem identification According to Johansson (2007a) a major problem with the existing ERP-systems is the misfit between the delivered functionality from the vendor and the needed functionality in the receiving end-customer organization, this despite aforementioned the focus on best practices. This gap causes high project implementation costs due to the need for further customization and non-realized business value. According to Johansson (2007a) this has lead to an increasing interest amongst vendors to improve future ERP-systems to support the end-customer organization even better. This quest is even more pressing when focusing on the small and midsized organizations that up until now have faced relatively higher ERP-system costs. 4-ugers projekt: The future of ERP-systems...
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This note was uploaded on 03/23/2011 for the course COMPUTER S DIT09M1-10 taught by Professor Saman during the Spring '10 term at Sheffield Hallam.
- Spring '10