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ERP Systems Size of Organization

1. At what size does an organization consider an ERP system? Why does size matter?

2. Is there an advantage to a centrally developed system, or do multiple systems designed specifically for each user group make more sense? Why or why not?

3.Can a system become bogged down with too much data? How long should historical transaction data be maintained?

Solution Preview

1. At what size does an organization consider an ERP system? Why does size matter?

First of all we need to consider the affordability and usability characteristics of an organization. ERP systems can help firms to track and control system-wide inventory and forecast future demand. Since the cost of an even modest ERP implementation can range from $2 million to $4 million, medium sized businesses generally start establishing ERP systems. Existing business processes need to be reengineered from the bottom up to dovetail with the ERP structure and requirements. If an organization is very small, ...

Solution Summary

The solution discusses how an ERP system can be applied to an organization and how much data would make it practical or impractical.

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