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Accounting: Question 1 ERP James McFarlane is the manager of a medium-sized manufacturing company. His company is looking at improving the design of its sales

Accounting:

Question 1 ERP "James McFarlane is the manager of a medium-sized manufacturing company. His company is looking at improving the design of its sales and manufacturing processes and one employee has suggested that it considers adopting an ERP system. The employee said something about the benefit of best practice in ERP systems. James is not sure which way to go. He believes that the organisations current practices are basically sound, unique in the industry and that, with a little modification, they could be even more of a distinguishing factor for the business. He has reservations about ERP systems and was contemplating TQM and BPR as other alternatives for the existing process. Advise James on the risks and benefits an organisation faces in adopting the processes in an ERP system. Should his company go ahead with the ERP system?"

Question 1 Hints for answers Your answers will vary. The key points for discussion should include:

What would be the advantages and disadvantages of adopting an ERP system?

How would the vanilla adoption of an ERP system impact the organisations uniqueness and competitive advantage?

Would the customisation of the ERP system be a good approach for James if he intends to keep existing practices?

Would the customisation of the ERP system give rise to any positive or negative consequences in regards to the cost and risk of ERP adoption?

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