A Single ERP System versus Best of Breed Operations Management Assignment Help

A Single ERP System versus Best of Breed

Each of the different ERP software packages has its particular strengths and weaknesses. One may be very strong in the financial module. while another is strong in the human resources area. Still a third may be strong in the production or marketing area. By adopting a single system. a company mu t accept all of the strengths and weaknesses of the system it selected. In contrast, a firm using a best of breed approach selects that software that has the best attributes for each functional area and then builds an interface that links all of the various software packages together. (Obviously.
this approach also has its drawbacks.)

Inflexibility Each software package is designed around a specific business model with its own inherent business processes. These are usually based upon best business practices, which are determined by the software vendor. Consequently. in adopting a particular ERP system, a company also must adopt the built-in business model and its associated business processes. While this represents an improvement for many firms, especially tho e that never had well-designed processes. those firms that already have good business in place still need to reconfigure them to be compatible with those in the ERP system. Similarly, certain ERP systems are designed to work' best in process-oriented industries such as petroleum or chemicals. and consequently are not as readily applicable to discrete
parts manufacturing such as automobiles or appliances.

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