Discussion
1. Why does enterprise software have so many problems?
Enterprise software faces problems primarily due to:
1. Complexity: The software is highly complex, making it difficult to manage and integrate
with existing systems.
2. Integration Challenges: Companies often have multiple ERP systems, complicating the IT
landscape.
3. Customization Risks: Customizing software can be expensive and risky, making future
changes difficult.
4. High Implementation Costs and Failures: ERP implementations are costly and often fail to
meet objectives.
5. Data Quality Issues: Integrating data from multiple sources can lead to significant errors
and inconsistencies.
2. Do you agree enterprise software is a trouble?Why?
Enterprise software is indeed a trouble. The complexity of enterprise software is a major issue.
It often consists of a patchwork of numerous databases and software programs built over
decades and interconnected by complex, poorly documented processes. This leads to high
IT costs, with a large portion of budgets dedicated to maintaining existing systems rather
than innovating. ERP systems, despite their promise, have been problematic. They are
expensive, with many companies spending vast amounts on software and installation, yet
75% of implementations are considered failures.
Customization efforts increase complexity and risks, such as creating hard-to-fix bugs and
making upgrades prohibitively costly. Data processed by enterprise software is error-prone,
with single systems having high error rates and integrating multiple data sources for ERP
implementations causing further issues like duplicate records. Even proposed solutions like
service-oriented architecture (SOA) face challenges. SOA takes years to materialize, may not
keep up with dynamic business environments, and adds its own layer of complexity. In
conclusion, the combination of complexity, implementation failures, data problems, and
solution challenges clearly indicates that enterprise software is a trouble.
3. What are the benefits of ERP systems?
ERP systems are expected to bring several benefits, although their actual realization has
been a subject of debate.
Streamlining and integrating processes: ERP systems promise to replace multiple operating
systems and applications with a single set of interconnected modules. This is intended to
eliminate the complexity associated with multiple systems and simplify data flows. For
example, it aims to seamlessly connect different functions such as finance, manufacturing,
and human resources within a multinational corporation, integrating processes that were
previously fragmented.
Record-keeping and data centralization: Having a system of record is seen as an advantage.
ERP systems allow companies to store all their product, inventory, and production records in
one place. This centralization of data can potentially improve data management and access
for decision-making purposes.
Potential for customization: Companies understand that they can customize ERP systems to
suit their unique business processes, which in theory, should enable them to adapt the
software to their specific needs.
4. ls the deployment of ERP systems necessary for firms? Why?
The deployment of ERP systems is not always necessary for companies, but they offer some
potential benefits:
1. Integration: ERP systems can integrate various business processes such as finance,
manufacturing, and human resources, reducing complexity and data inconsistencies across
systems.
2. Cost and Efficiency: By automating and streamlining processes, ERP systems can reduce
costs and improve efficiency.
3. Flexibility and Adaptability: Good ERP systems can adapt to changes in business needs,
providing the necessary flexibility to meet evolving requirements.
However, the article also points out issues and challenges associated with ERP system
deployment:
1.Complexity and Cost: The implementation and maintenance of ERP systems are expensive
and often more complex than anticipated.
2.Risk of Implementation Failure: Studies suggest that up to 75% of ERP implementations are
considered failures.
3.Technical Limitations: ERP systems may not offer the expected flexibility and
customizability, especially when dealing with complex and changing business needs.
In summary, the deployment of ERP systems depends on a company's specific needs,
resources, and strategic objectives, as well as their willingness to bear the costs and risks
associated with implementing and maintaining these systems.
5. Will ERP systems make firms more rigid or flexible?
ERP systems were intended to make firms more flexible by streamlining and simplifying
business processes. However, as discussed in the document, they often introduce rigidity
due to the complexity and interrelatedness of their components. This complexity can make it
difficult and costly to customize or change ERP systems to meet evolving business needs,
leading to a paradox where systems designed for flexibility end up contributing to
organizational rigidity.
