Page 17 - DCAP302_ENTERPRISE_RESOURCE_PLANNING

Unit 1: ERP Overview

making the right choice notes

Single-instance ERP is not for everybody. Here are the key characteristics of companies that tend
to choose global ERP and of those that use regional systems.
global erp

1. Multinationals seeking to centralise financial reporting and close their monthly or quarterly
financials faster.
2. Companies looking to minimise the variety of financial controls in place to simplify
regulatory compliance activities.
3. Corporations that stand to gain operational efficiencies by centralising management and
control of operational procedures, such as order management, materials handling and
inventory control.
4. Organisations seeking to maintain common business processes across various divisions
and geographies.
5. Corporations that are highly distributed or operate as collections of regional businesses.
6. Companies that need customised systems to meet unique business requirements in
particular markets.

7. Multinationals subject to various local rules and regulations that require reporting
of financials or operational data in formats different from those used by the rest of the
company.
8. Far-flung companies whose regional units may be subject to infrastructure instability,
making it difficult to maintain consistent high-speed connections to a host system located
across the world.
figure 1.7: procurement cycle

Companies that consolidate to a single global ERP system face many human and technical
challenges, including these:
1. Managing change, including standardising business processes

2. Communicating project goals to constituents from different cultures

LoveLy professionaL university 11