Madapusi/Souza

8 important questions on Madapusi/Souza

Average time lapses: 

Chartering (6months), project/system adaptation (>12months), shakedown/going live (6 months)

Managers should take three issues into account, when implementing ERPs:

1.       System configuration

2.       ERP information architecture

3.       Systems rollout to reap the benefits of ERP system

ERP Information Architecture: 

1.       Centralized architecture, for companies with high levels of standardization of data and commonality of business processes à Centralized: one central uniform system for whole organization.


2.       Distributed architecture, for companies with autonomous business units. à Slightly different clones in subsidiaries.


3.       Hybrid architecture, for companies that want to leverage their global supply chains and at the same time localize their products and services. à Some modules centralized (finance/accounting), others decentralized clones

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ERP System Rollout/ Introduction: two common ways; 

1.       Big Bang; e.g. shut down for a period of time, restart.

2.       Phased implementation; e.g. gradual transition to new system.

2nd dimension: international strategy of the firm

1. Multinational
2. Global
3. Transnational

Local resposiveness low, global interdependence high

single financial/ single operations

- (Centralized)

- Big Bang

- Global

Local responsiveness low, global interdependence low

local systems

- (Loose federation)

- no coordination

Local responsiveness high, global interdependence low

multi financial/ multi operations

- (Clones)

- Independent phased rollout

- Multinational 

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