ERPThe Real Story Behind ERP: Separating Fiction from Reality

This book chronicles possibly the most interesting story of the past several decades in the enterprise software space: the lack of evidence for the benefits of ERP systems. Yes, the most popular and widely purchased application in enterprise software had a series of logics or central arguments for why it should be purchased. In the early stages of the ERP “revolution” there was no evidence, proposals regarding ERP Software were made without evidence. Three decades into the history of ERP systems, the evidence is in, and it looks quite a bit different from what was originally proposed. However, this evidence has not been synthesized and reviewed comprehensively — and then explained to corporate buyers. This book is the first to do exactly that.

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Table of Contents Continued..

This is a continuation of the table of contents to the ERP book The Real Story Behind ERP. This book is essentially ERP demystified. Many of the assumptions regarding ERP systems are intensively analyzed, and many of them debunked, and this the only ERP book to do this. To see the main page for The Real Story Behind ERP, see this link.

Chapters

  • Chapter 5: The Integration Benefits Logic for ERP
  • Chapter 6: Analyzing the Logic Used to Sell ERP
  • Chapter 7: The High TCO and Low ROI of ERP
  • Chapter 8: ERP and the Problem with Institutional Decision Making
  • Chapter 9: How ERP Creates Redundant Systems
  • Chapter 10: How ERP Distracts Companies from Implementing Better Functionality
  • Chapter 11: Alternatives to ERP or Adjusting the Current ERP System

Chapter 5: THE INTEGRATION BENEFITS LOGIC FOR ERP

  • The Unfortunate History of ERP “Integration”
  • ERP and the Internet
  • Errors in the Platitudes Regarding ERP Integration
  • The Over Integration of ERP Systems
  • How ERP Sets the Integration Agenda for All Other Applications

Chapter 6: ANALYZING THE LOGIC USED TO SELL ERP

  • Y2K (Year 2000)
  • One System to Rule Them All: The Single System Logic for ERP
  • The Changing Story on ERP’s Ability to Meet All Requirements
  • Account Control
  • One Size Fits All
  • Planning for the Inevitable Customization
  • ERP’s Operational Improvement
  • The “All Industries” Logic of ERP
  • The Example of Discrete Versus Process Manufacturing Requirements
  • The Single Instance Logic of ERP
  • Two-tiered ERP
  • The Logic of Cost Reduction for ERP
  • Business Cost Reduction
  • The Logic of ERP Driven Improved Financial Performance
  • Conclusion

Chapter 7: The High TCO and Low ROI of ERP

  • Background on TCO
  • Various ERP TCO Studies Versus Our Estimates
  • Why ERP Equals Long Implementation Times
  • ERP ROI
  • The Low (and Misleading) ROI of ERP Software
  • The Summation Up Until This Point
  • Negative ROI: The Missing Link of the ERP ROI Research
  • Support Costs of ERP
  • The High Opportunity Cost of ERP
  • The Logic of ERP Driven Improved Financial Performance
  • Conclusion

Chapter 8: ERP AND THE PROBLEM WITH INSTITUTIONAL DECISION MAKING

  • ERP Success and Failure

Chapter 9: HOW ERP CREATES REDUNDANT SYSTEMS

  • The Background on Supply Planning Database Segmentation

Chapter 10: HOW ERP DISTRACTS COMPANIES FROM IMPLEMENTING BETTER FUNCTIONALITY

  • Tier 1 ERP: A Philosophy of Putting the Mediocre at the Center
  • Choosing the Right Analogy
  • Case Study #1 of ERP Misuse: Managing the Bill of Materials/Recipe
  • Case Study #2 of ERP Misuse: Disabling the Enterprise for Collaboration
  • Case Study #3: How ERP Undermines Internal/External Planning
  • What Changed and Who Must Know What
  • ERP Repeatedly Getting in the Way
  • Case Study #4 of ERP Misuse: Intercompany Transfer
  • Intercompany Transfer
  • Intercompany Transfer Alternatives
  • Matching Purchase Order/Sales Order for Asymmetrical Intercompany Transfers
  • Controlling Transfer of Ownership in ICO Movement
  • The Core Problem of Limited Dimension Transactions
  • Conclusion

Chapter 10: ALTERNATIVES TO ERP OR ADJUSTING THE CURRENT ERP SYSTEM

  • Is Criticism of ERP is Simply Negative and Counterproductive?
  • Reducing ERP Dependency
  • The Research is Conclusive for the Negative Hypothesis
  • ERP Adjustment
  • Free from Overinvestment in ERP
  • ERP Alternatives Per Company Size
  • Conclusion

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Conclusion

  • Is There Truly No Alternative to ERP?
  • Appendix A: MRP and the History of MRP

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