Category Archives: The Role of Technology in Operations

Increase in Self-Service

Increase in Self-Service Many service industries have seen an increase in self service operation . Examples include self-service gas stations. ATM  at bank. and automated toll collections on highways. Self-service also is used extensively in e-businesses, ranging from the purchasing of sweaters from L.L. Bean and airline tickets from American Airlines to the purchase of stocks and bonds through Fidelity and con

Technology in Services

Technology Trends in Services Advances in technology, including improved automated equipment, voice recognition systems high-speed data transmission lines (like broadband), and faster and more powerful computers; also have had a significant impact on services. Contributing to the growing trend in services is the fact that large amounts of data are readily accessible today and can be transmitted inexpensively ov

A Single ERP System versus Best of Breed

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 c

Criticisms of ERP Systems

Criticisms of ERP Systems As HP’s facility in Germany clearly demonstrates, there are significant advantages to installing an ERP system. However, these systems have been criticized in many respects for their failure to provide the desired infrastructure support that management expected. Two of these concerns are presented below.

Lack of Communication

Lack of Communication. Because the installation of an ERP system is an organization wide under taking, there is need for continuous communication within and across all functional areas with respect to the status of the implementation. All too often. as the implementation proceeds, some parts of the organization are unaware of what is occurring, and consequently fail to take the appropriate actions that are neces

Lack of Proper Training

Lack of Proper Training In a desire to convert to the new system quickly, there is often a shortfall in the training of personnel at all levels. Proper training is required from the technical perspective. as well as from the users' perspective. The IT department within an organization needs to fully understand all of the technical characteristics of the system  in order to provide the proper support to the busin

Lack of Adequate Resources

Lack of Adequate Resources Many firms underestimate the resources that are required to properly install an ERP system. In addition to the actual cost of the software, which often represents only about a third of the total implementation costs, there are also the costs of outside consultants and the costs of labor for company personnel that are assigned to the project.

Lack of Top Management Commitment

Lack of Top Management Commitment By its very definition. the installation of an ERP system is an organization wide undertaking, involving all of the functions within a firm. Therefore, the implementation of an ERP system requires a major commitment from top management in order for it to be successful. This means not only the  commitment of resources, but also the commitment of top management’s time to e

Why ERP Systems Fail

Why ERP Systems Fail The business landscape is littered with failed attempts at installing ERP systems. Hershey Foods, for example, incurred significant product distribution problems after it implemented SAP’s R/3 system, resulting in its candy not being on retail shelves during its peak season between Halloween and Christmas. Whirlpool, a major appliance manufacturer. also attributed shipping delays to it

Benefits of ERP Systems

Benefits of ERP Systems When properly installed and operating, an ERP system can provide a firm with a significant competitive advantage, which can fully justify the investment of ume and money. The benefits of using an ERP system can take many forms, including (a) reduction in the number of errors through the use of a common database. (b faster customer response times. (r ) faster order fulfillment times, and