ERP notes

Key Problems with ERP 

this is my notes in the company document about ERP studies. No ones probably going to read it, and its more out of compulsion to write about it – I hate having in accessible knowledge. I would rather write down my Wrong Theories to be able to differentiate the Theories from Me – and how I’m working off limited data. 

  1. ERP lost sight of their Objective
    1.  https://en.wikipedia.org/wiki/Eliyahu_M._Goldratt 
    2.  https://tinyurl.com/rwjge4e 
    3.  Beyond the Goal and his body of work pointing out that ERPS has become bloated and disconnected from their Objective. The pricing of most ERP and its design is all about adding more features and not designing based on what the client needs. The bloating of the cost of ERP and its disconnected to the companies that really need it. 
  2.  People don’t Understand how ERPS Works.
     
    1.  Justin’s Opinion. 
      1.  5Y Analysis.

        Supply Shortages. Why? 

        1.  Caused by SYstem unable to give Accurate and Up to Date Data to Stakeholders. Why? 
          1.  Because the Inputs and processing were not in their Area of Awareness and Considerations. Why? 
          2.  Not everything went down. So that means some worked and some didn/t 
          3.  IF they knew who couldn’t function then they would have made provisions/preparations as to allow them to function. 
          4.  But they didn’t know and the problems overloaded the Management’s ability to coordinate a response. 
        2.  Because if they had a Detailed list of Input and Processing Sources they could try doing Tests of what would happen if they pushed through. Why? 
        3. They didn’t understand – Understand enough to Qualify and Quantify the Risks. Why? 
        4.  In my experience. Most ERP has gotten to complex, and most of the resources that go into ERP is building up the features and packaging it. 
          1. When I compare my research of SAP to ERPNEXT I can easily find the documentation of ERPNEXT, but SAP while proprietary is being taught in Schools I the Philippines but the Detailed Description of Modules. Of the Books, I can find about SAP the Product =/= the Books. Each book is about a module or two, but SAP is sold as an entire package. 
          2.  E. Goldratt’s prediction and criticism hold true today as compared when he made it around the 2000s. That the understanding of what ERPS does is inadequate = as it does not pass his test of “what rules does it change”. In the way, ERPS, like SAP, are bloated and carry over costs of Developed world Companies into 3rd World Companies.
             
          3. 20 years onward KIU and ERPNEXT have brought down the Price of – what is an Essential Service and System. Everyone should be making decisions based on DATA. 
  3.  ERPs are for companies without the Effort to Invest in their People. 
    1.  Japanese Firms use a combination of SPreadsheet and ERP. 
    2.  Harold and Bruce who are aware of SAP both have very above-average Spreadsheet skills.

      They can pretty much be taught how to do the same ERP reporting in spreadsheets using advance functions that make a Spreadsheet act like a database. 

    3.  The thing is they were Taught and while they are above the curve in learning, in order for them to be able to learn they still needed adequate IT equipment. I learned that Accounting has Windows XP and still uses MS office 98 – that’s 20 years of Spreadsheet technology. The computer has 512MB ram. Note also a computer that old has degraded performance – 
    4.  There is a strong tendency to make something that can live on bread and water to be left with bread and water.

      Its easier to roll out an ERP who will teach employees how to use these, than to invest more in people over 20 years. 

      1.  In my analysis, the cost of computers and updating would have increased the per month salary by 20%. 10k per month, to 12k per month, but over 20 years that would have been 480k but the cost would have been relative to was 4.5M. 10% over time to have made people able to make better systems with the technology they had 
      2.  It’s easy to see the Hindsight of what resulted in it. It’s hard to prove the “could-have-been”. I’m talking in Hindsight as well, in a Reality where we did do it and didn’t know what would have happened if we subsisted in only bread and water then it would have been considered a wasted luxury.

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