Chapter 1: Importance and Impact of ERP Systems on Industry and Organization Mary Human Computer InteractionM. Dunaway, Susan E. Bristow (University of Arkansas) The importance and impact of ERP systems across the industry Information technology in the broadest sense refers to both is discussed. Ways on how to capitalize for continued growth the hardware and software used to store, retrieve, and manipu- are suggested. Examples that relate to real-world scenarios are late information using computer systems and applications. applied to demonstrate business value. Key performance indicators known as KPI, provide baseline metrics that companies use to measure how well the system and 1.1 Introduction processes are performing. ERP systems have revolutionized businesses around the globe. Legacy system is when a new system is identified for replace- Processes are leaner and more efficient, costs are minimized, ment; the older system is referred to as the legacy. positive customer service is more prevalent, and government Lifecycle refers to the structure from which software applica- compliance is present. Companies have saved significant tions such as ERP evolves and is integrated within business amounts of money, sometimes even in the millions, when their processes. operations are run by an ERP system. The ERP system not only affects the company itself, but also the supply chain including ERP systems bring corporate business processes and data access external entities, both customers and suppliers. Throughout together in an integrated way that significantly changes how this chapter, you will see the importance and impact that ERP they do business. The ERP system implementation, an enormous systems make on industry and organizations. capital expenditure, consumes many corporate resources associated with a high level of risk and uncertainty. ERP systems Questions 1. Given the information presented regarding future impacts to industry and organizations, what are some other potential impacts ? 2. How might benefits differ and be similar among industries ? 3. What are some advantages and disadvantages of business process integration ? 4. Environmental and competitive factors play an important role in organizations' ability to respond to changing requirements. What tools, methodologies, and techniques are needed for companies to meet dynamic factors ? 5. What additional ERP services and features would create added value for adoption and future use in companies ?