Integrated Resource Planning (ERP) systems is a generic term for an integrated enterprise computing systems. Theses systems help organizations to deal with their supply chain, receiving, inventory management, customers orders management, production planing and managing, shipping, accounting, HR, and all other activities that take place in a modern business. ERP is defined as a strategic business solution that integrates all the business function, including manufacturing, financial, and distribution.

The benefits of a properly selected and implemented ERP system can be significant. Inventory costs can be reduced (on the average) by 25 to 30%; raw material costs can be reduced by about 15% on average. Lead time for customers, production time and production costs can be reduced as well. It is estimated that businesses around the world are now spending $10 billion per year on ERP systems, and will be over $50 billion per year by 2003.

Despite these high expectations and huge investments, ERP implementations often fail. The New York Times recently ran an article on "Software That Can Make a Grown Company Cry" (November 8, 1998) telling about problems with ERP implementation. Allied Waste Industries purchased an ERP software package from SAP America, a major ERP software vendor, but discontinued its use after finding it too complicated, too expensive, and a poor value in terms of added functionality (Wall Street Journal, Wednesday, June 9, 1999). By doing so they lost over 40 million dollars.

This mini track is focused on how to identify the benefits an organization may or may not gain by using ERP systems, how to identify and select the best software package that will suit the organization, how to deal with consultants and software vendor and how to implement the software. What do organizations have to do in order gain the potential benefits from implementing and using ERP systems.

Possible Topics may include (but are not limited) the following:

Business Strategies, Processes and IT Needs:

• Does a company need to change its business processes so it is able to deploy the new system? If so, do these changes involve major or minor processes? What impact do these changes have on an organization's operations?
• Is ERP an effective business strategy for most companies to pursue?
• Are organizational needs similar and therefore can one ERP package suit most of them or is there a need for different types of ERP packages to address different information needs?

Value added:

• What are the benefits an organization may gain by using ERP? Can these benefits be gained by every organization that uses ERP or are there specific conditions that must be present to realize the benefits?

• Do all sizes of companies gain the same benefits by using ERP? Do they experience the same difficulties with ERP (as they relate to planning, evaluating and selecting, implementing, and utilizing)?
• What impact does ERP have on an organization's performance (for example, profitability and market share)? Under what circumstances? Do organizational characteristics contribute in any way to the value ERP adds to the organization?

Implementation:

• Study organizations that have reported successful and unsuccessful implementations. Identify the impact on company strategy, structure, organizational culture, and business processes and procedures. If structured methods were used in the ERP projects, what impact did it have on various organizational characteristics?
• What are the conditions for successful implementation of ERP systems by organizations pursuing a supply chain management (SCM) strategy (identification of organizational and technological implementation issues)?
• What characteristics define a successful ERP implementation? What factors contribute to the success or failure of ERP implementation?
• What is the role of the ERP software vendor within the organization? Does it impact on the success of ERP implementation?

Arik A. Ragowsky, Ph.D. or Toni M. Somers, Ph.D.
Department of Information Systems and Manufacturing
School of Business Administration
100 RANDS House
Wayne State University
Detroit, MI 48202
313-577-7838 or 313-577-9144
E-mail to: aragowsky@aol.com or aa380@wayne.edu