AFM241 Chapter Notes - Chapter 6: Business Process Reengineering, Business Process, Resource Allocation
Document Summary
An es, when successfully implemented, links all primary and support activities within a firm into a comprehensive and integrated system that is based on a shared database. Connect primary and support activities within a firm (the company"s value chain) and integrate the company"s supply chain. On average, total implementation costs are in the range of 2-3% of revenues and consulting fees can be 3-10 times the cost of the software. Benefits: about suppliers, customers, and employees reduction in working capital and access to more accurate information faster. Half of erp projects achieve less than half of projected benefits (preez, 2012) Main reason for most companies is the need for a common and integrated it platform, other reasons include opportunity improve business processes, increase data visibility, reduce operating cost, increase responsiveness to customers, and improve firm"s strategic decision-making. Justification affects the physical scope, business process scope, technical scope, module implementation strategy, and resource allocation of an erp implementation.