August-Wilhelm Scheer and Frank Habermann MAKING ERP A SU CCESS Using business process models to achieve positive results. B usiness information systems can be either designed as custom applications or purchased as off-the-shelf standard solutions. The development of custom applications is generally expensive and is often plagued by uncertainties, such as the selection of appropriate development tools, the duration of the development cycle, or the difficulties involved in assessing costs. Thus, empirical surveys have shown that between half to two-thirds of information systems projects fail . The current tendency to shift from individual development to standardized, prepackaged software solutions is therefore not surprising. Yet, standardized ERP systems such as SAP R/3, Oracle Applications, and PeopleSoft have disadvantages, too. Huge storage needs, networking requirements, and training overheads are frequently mentioned ERP problems. However, the scale of Business Process Reengineering (BPR) and customization tasks involved in the software implementation process are the major reasons for ERP dissatisfaction . Baan, Peoplesoft, as well as SAP calculate that customers spend between three and seven times more money on ERP implementation and associated services compared to the purchase of the software license. Our own experiences validate that the ratio between ERP implementation efforts
Communications of the ACM – Association for Computing Machinery
Published: Apr 1, 2000
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