Power IT: Company Case Study and System Implementation

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In order to survive in this competitive business world, every business must produce or offer not only a better product or service, they must also offer better customer service, reduce their production costs and overhead costs, have a more well-planned management system, a highly reliable infrastructure, and the list is endless. Many of these can be achieved through a customized enterprise resource planning system (ERP). ERPs serve as “one comprehensive database to house all of the company’s corporate information”. However if these systems are not used correctly with the necessary change in management of people and technology it can result in failure.
PowerIT Ltd. is an autonomous company of about 200 employees whose job is to produce and repair power conversion supplies. The midsize company decided to replace their existing materials resource planning (MRPII) legacy system with an enterprise resource planning (ERP) system to “modernize practices and provide an integrated software solution” to match the growth of their customer base.
Like many other companies, PowerIT chose to purchase an ERP package from a third party vendor and have it modified to fit their company. The advantage of this option over an internally developed system is that it does not require high knowledge IT team, a requirement in developing the high scale software and application domain expertise. The disadvantage, however, is that in-house developed systems are custom- built for the company by an IT team that has high company knowledge. Whereas, a cheaper and mass produced off- the- shelf solution is built to fit the industry standard and is not tailored for a particular company. As a result, it is difficult to gain a competitive advantage.
PowerIT’s acquisitio...

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...is not used correctly by many departments. Since the initial demands or this system were formulated incorrectly, it is worth rebuilding the solution. Also, re-implementing the system is recommended because the usage of existing system has shown many advantages and disadvantages of current solution, and this experience might be used in order to formulate correct and efficient system requirements. Furthermore, creating a new solution will most probably enhance communications with the new owner of the ERP solution. Their technical support is evidently uncomfortable with the obtained product. If this company designs a new solution, its professionals might be able to train the users and provide better support. In general, the decision to reconsider requirements and re-implement the existing system is optimal from technical, financial and organizational point of view.

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