Cambridge University Press

0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic

Commerce, and Risk
Daniel E. OLeary
Frontmatter
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Enterprise Resource Planning Systems

Systems, Life Cycle, Electronic Commerce, and Risk

Enterprise resource planning (ERP) systems are powerful software packages

that enable businesses to integrate a variety of disparate functions. In particu-
lar, ERP systems can provide the foundation for a wide range of e-commerce
based processes, including web-based ordering and order tracing, inventory
management, and built-to-order goods. This book examines the pros and
cons of ERP systems, explains how they work, and highlights their role at
the heart of e-commerce.
The author begins by explaining the background of ERP systems and goes
on to discuss specific systems, such as SAP, and their capabilities. He then
focuses on the ERP life cycle, from the decision on whether or not to adopt
an ERP system to the time when the system goes live. After covering the
use of ERP in e-commerce, he concludes by discussing the risks associated
with the adoption of ERP systems.
The book contains several detailed case studies and will be an invaluable
guide to managers and consultants working with ERP systems. It also will be
a useful reference for MBA students taking courses in information systems
management.

Daniel OLeary received his Ph.D. from Case Western Reserve University
and his MBA from the University of Michigan. He is a Professor in the Mar-
shall School of Business at the University of Southern California. He has
published over 120 papers in a variety of computer science, information sys-
tems, and management science journals.

Cambridge University Press www.cambridge.org

Cambridge University Press
0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic
Commerce, and Risk
Daniel E. OLeary
Frontmatter
More information

Enterprise Resource Planning Systems

Systems, Life Cycle,

Electronic Commerce, and Risk

DANIEL E. OLEARY
University of Southern California

Cambridge University Press www.cambridge.org

Cambridge University Press
0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic
Commerce, and Risk
Daniel E. OLeary
Frontmatter
More information

published by the press syndicate of the university of cambridge

The Pitt Building, Trumpington Street, Cambridge, United Kingdom

cambridge university press

The Edinburgh Building, Cambridge CB2 2RU, UK www.cup.cam.ac.uk
40 West 20th Street, New York, NY 10011-4211, USA www.cup.org
10 Stamford Road, Oakleigh, Melbourne 3166, Australia
Ruiz de Alarcn 13, 28014 Madrid, Spain

Daniel E. OLeary 2000

This book is in copyright. Subject to statutory exception and

to the provisions of relevant collective licensing agreements,
no reproduction of any part may take place without
the written permission of Cambridge University Press.

First published 2000

Printed in the United States of America

Typeface Times 10/13 pt. System AMS-TEX [FH]

A catalog record for this book is available from the British Library

Library of Congress Cataloging in Publication Data

OLeary, Daniel Edmund.
Enterprise resource planning systems : systems, life cycle,
electronic commerce, and risk / Daniel E. OLeary.
p. cm.
ISBN 0-521-79152-9 (hb)
1. Production management. 2. Management information systems.
3. Business planning. 4. Electronic commerce. I. Title.
TS155.O385 2000
658.8
4 dc21 00-027554

ISBN 0 521 79152 9 hardback

Cambridge University Press www.cambridge.org

Cambridge University Press
0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic
Commerce, and Risk
Daniel E. OLeary
Frontmatter
More information

Contents

Acknowledgments page vii

part one. introduction and background
1 Introduction 3
2 Systems and Technology Background 13
part two. erp systems
3 ERP Systems Background 27
Appendix 3-1 Geneva Steel: Changing the Way Business
Is Done 38
4 ERP Data Input 49
5 ERP Output Capabilities 61
Appendix 5-1 Quantums Virtual Data Warehouse 68
6 Technology Enabled versus Clean Slate Reengineering 73
part three. erp life cycle
7 Deciding to Go ERP 89
Appendix 7-1 ERP Choice In-House or Outsourced 100
8 Choosing an ERP System 102
Appendix 8-1 Chesapeake Display and Packaging 113
Appendix 8-2 A CFOs Inquiry 115
9 Designing ERP Systems: Should Business Processes or
ERP Software Be Changed? 117
Appendix 9-1 Microsofts SAP Implementation 130
10 Designing ERP Systems: Choosing Standard Models,
Artifacts, and Processes 141
11 Implementing ERP Systems: Big Bang versus Phased 151
Appendix 11-1 Quantum, I: Requirements, System Choice,
and Implementation Approach 162

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Cambridge University Press
0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic
Commerce, and Risk
Daniel E. OLeary
Frontmatter
More information

vi Contents

Appendix 11-2 Quantum, II: Going with Big Bang 167

Appendix 11-3 Quantum, III: Collaboration and Competition 171
12 After Going Live 172
Appendix 12-1 A Case Study of XYZ Company: How Should
We Evaluate the ERP Project? 183
Appendix 12-2 Deloitte Consulting Post-Implementation
Checklist 184
13 Training 186

part four. electronic commerce and risk

14 ERP and Electronic Commerce 195
Appendix 14-1 Implementing J.D. Edwards OneWorld at
the University of Southern Californias Leventhal School:
An Interview with Professor Les Porter 206
15 ERP Risk: Success and Failure Factors 213

Index 225

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Cambridge University Press
0521791529 - Enterprise Resource Planning Systems: Systems, Life Cycle, Electronic
Commerce, and Risk
Daniel E. OLeary
Frontmatter
More information

Acknowledgments

I have a number of acknowledgments. First, I would like to thank firms for

doing so many interesting applications and implementations of ERP and mak-
ing their findings known so that others can benefit from their insights. I would
also like to thank the students for their curiosity about ERP, which ultimately
pushed my interest.
I would like to thank Sabine Hirt, Robert Plant, and the anonymous referees
for their comments on earlier versions of this book.
I would like to thank my wife, Lynn, and my kids Danny, Lauren, and
Kellyn for their patience while I completed this manuscript and the revisions.

vii

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