TWR Corporation Attempted to Implement Its First ERP System Using

question 30

Essay

TWR Corporation attempted to implement its first ERP system using the systems development life cycle, but the project was deemed a failure. Some of the actions that led to the failure are listed below. For each one, indicate the major cause of ERP implementation failure suggested by Umble and Umble that most clearly applies. Do not use any major cause more than once.
A. Employees using the ERP system were expected to learn how to use the system after it was operational.
B. Employees who input information to the system made errors.
C. Only employees from the information systems department were on the project team.
D. The company president missed most of the planning meetings.
E. The ERP project team leader predicted a 90% reduction in information technology costs after the system was implemented.
F. The project team leader promised that no-one would lose their job as a result of ERP system implementation.
G. The project team skipped steps in the systems development life cycle.
H. The system implemented could not be customized for TWR's operations.
I. TWR continued to rely on paper-based forms and spreadsheet software to track inventory.j. TWR's existing computers could not run the software fast enough.

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Definitions:

Signalling Theory

A concept in economics and finance suggesting that one party credibly conveys some information about itself to another party.

Investment Opportunities

Options available to individuals or entities to invest capital with the expectation of a future financial return.

Dividend Reinvestment Plans

Investment plans that allow shareholders to automatically reinvest their cash dividends in additional shares of the company's stock, usually without commission.

Strict Residual Dividend Policy

A dividend policy in which dividends are based on the earnings left over after all operating expenses, taxes, and project investments are covered.