HRM 3400 Lecture Notes - Lecture 35: Siebel Systems, Peoplesoft
23 May 2018
School
Department
Course
Professor
HRM 3400 Lecture 35 Notes – Risk of Implementation Failure and Risks in Using One Vendor
Introduction
Risks in Using One Vendor
• The high ost to sith to aother edor’s ERP sste akes it etreel ulikel that
a firm will do so.
• After a company has adopted an ERP system, the vendor has less incentive to listen and
respond to customer concerns.
• The high cost to switch also increases risk—in the event the ERP vendor allows its
product to become outdated or goes out of business.
• Selecting an ERP system involves not only choosing the best software product, but also
the right long-term business partner.
• It was unsettling for many companies that had implemented PeopleSoft, J.D. Edwards,
or Siebel Systems enterprise software when these firms were acquired by Oracle.
Risk of Implementation Failure
• Implementing an ERP system for a large organization is extremely challenging and
requires tremendous amounts of resources, the best IS and businesspeople, and plenty
of management support.
• Unfortunately, large ERP installations occasionally fail, and problems with an ERP
implementation can require expensive solutions.
• The following list provides tips for avoiding many common causes for failed ERP
implementations:
o Assign a full-time executive to manage the project.
o Appoint an experienced, independent resource to provide project oversight and
to verify and validate system performance.
o Allow sufficient time for transition from the old way of doing things to the new
system and new processes.
find more resources at oneclass.com
find more resources at oneclass.com
