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  • Essay / Power IT: Business Case Study and System Implementation

    In order to survive in this competitive business world, every business must produce or offer not only a better product or service, it must also offer a better customer service and reduce production costs. and overheads, have a better planned management system, highly reliable infrastructure, and the list goes on and on. Many of these can be accomplished with a customized enterprise resource planning (ERP) system. ERPs serve as “a comprehensive database to house all of the company’s business information.” However, if these systems are not used properly with the necessary change in people and technology management, it can lead to failure. PowerIT Ltd. is a self-contained company with about 200 employees whose job is to produce and repair energy conversion power supplies. The mid-sized company decided to replace its legacy Material Resource Planning (MRPII) system with an Enterprise Resource Planning (ERP) system to "modernize its practices and provide an integrated software solution" tailored to the growth of its customer base. Like many other businesses, PowerIT chose to purchase an ERP package from a third-party vendor and have it modified to suit their business. The advantage of this option over an in-house developed system is that it does not require a highly competent IT team, a necessary condition for developing large-scale expertise in software and applications. The downside, however, is that internally developed systems are custom-built for the business by an IT team with in-depth knowledge of the business. In contrast, a cheaper, mass-produced off-the-shelf solution is designed to fit industry standards and is not tailored to any particular company. As a result, it is difficult to achieve competitive advantage. PowerIT acquisition...... middle of paper ...... is not used properly by many departments. Since the initial demands of this system were poorly formulated, it is worth rebuilding the solution. Furthermore, reimplementation of the system is recommended because the use of the existing system has shown many advantages and disadvantages of the current solution, and this experience could be used in order to formulate correct and effective system requirements. Additionally, creating a new solution will most likely improve communications with the new owner of the ERP solution. Their technical support is obviously not comfortable with the product obtained. If this company designs a new solution, its professionals may be able to train users and provide better support. In general, the decision to reconsider the requirements and reimplement the existing system is optimal from a technical, financial and organizational point of view..