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Part 3 The 3 Questions

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Answer to Question One
Part A.
Enterprise systems are summed up in one word: integration. Through its use of a
common, centralized database, the ERP takes the disparate parts inherent and necessary to the
business process and houses them all in one place. It also overlays a reporting system that
allows managers to access data via dashboards, this gives every manager and key employee
access to the appropriate data shared across the company.
In order to choose an ERP, companies have to know their own business, their own
procedures and what the ERP offers. As the company works with the advisors to map and
configure more granular processes, they may realize they need to have extensive
customization performed in order to fit the way they do business (Laudon & Laudon, 2014).
However, the needs of businesses are not uniform. Size matters, for one. Small to medium
businesses are unique in that they are usually specialized and do not control a large chunk of
the market. There is a high failure rate for small to medium businesses because they don’t
have the resources to truly analyze and adapt the system (Saini, Nigam & Misra, 2013).

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The difficulty also applies to larger businesses. As Manjit Singh points out, often
ERP providers promise the world but, hide the difficulties (Singh, 2010). They say that the
system will be easy to install and lead to great efficiencies but, to obtain this value, the
company must understand all of its processes. They have to spend a lot of time working with
their entire company to transition to the new system. Large companies face an especially
difficult task of obtaining buy-in from key managers and senior management; they are also
challenged with properly training their employees on the system (Saini, Nigam & Misra,
2013). There is a high failure rateSingh himself had been part of two failures with other
companies before joining Chiquita (Mitchell, 2010). According to Ali & Xie (2012), for
certain types of businesses there is a rate of 178 percent of budget cost, the implementation
period is 2.5 times longer, and 66 to 70% of ERP implementation projects fail (p. 115).
Mohawk is much different than Chiquita. First, Mohawk is a small to medium size
business, while Chiquita is a large multi-national with 23,000 employees in 70 countries, and
six continents, with part of their workforce predominantly in Central America (Wailgum,
2009). In addition, Mohawk is a manufacturing-heavy business, while Chiquita’s main issue
is tracking and communication between their various branches and functions. The fact is that
one size does not fit all in business. There are other needs for the company- project
management, machine (production) performance management-- that the ERP doesn’t
provide.
Mohawk’s problem is that they have a lot of equipment, which means a lot of capital
investment, and they need to use it efficiently. They need to ‘standardize maintenance
workflows’ while efficiently managing procurement. Mohawk also wanted to reduce energy
consumption- by 5 to 10%. They need to be able to connect their cross-functional teams that
are spread out over 3 locations (Shaw, 2009). Mohawk needed a system that is similar to

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Surname 1 Name Instructor Course Date Answered Answer to Question One Part A. Enterprise systems are summed up in one word: integration. Through its use of a common, centralized database, the ERP takes the disparate parts inherent and necessary to the business process and houses them all in one place. It also overlays a reporting system that allows managers to access data via dashboards, this gives every manager and key employee access to the appropriate data shared across the company. In order to choose an ERP, companies have to know their own business, their own procedures and what the ERP offers. As the company works with the advisors to map and configure more granular processes, they may realize they need to have extensive customization performed in order to fit the way they do business (Laudon & Laudon, 2014). However, the needs of businesses are not uniform. Size matters, for one. Small to medium businesses are unique in that they are usually specialized and do not control a large chunk of the market. There is a high failure rate for small to medium businesses because they don’t have the resources to truly analyze and adapt the system (Saini, Nigam & Misra, 2013). 1 Surname 2 The difficulty also applies to larger businesses. As Manjit Singh points out, often ERP providers promise the world but, hide the difficulties (Singh, 2010). They say that the system will be easy to install and lead to great efficiencies but, to obtain this value, the company must unde ...
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