Overlooked Impact of ERP Implementation on Enterprises

D.

When developing a business case for an enterprise resource planning (ERP) implementation, several factors need to be considered, and each factor's significance may vary depending on the organization's specific needs. However, among the given options, overlooking the interdependent systems can cause the greatest impact on the enterprise.

Interdependent systems are systems that are reliant on one another to function. In an ERP implementation, interdependent systems refer to the systems that are integrated with the ERP system, such as financial systems, supply chain systems, inventory management systems, etc. Failure to consider interdependent systems can lead to significant problems during the implementation phase, including data integrity issues, system incompatibilities, and process failures.

For example, suppose the financial system is not adequately integrated with the ERP system, resulting in the incorrect recording of financial transactions. In that case, the enterprise's financial data will be inaccurate, leading to incorrect financial reporting, loss of revenue, and damage to the enterprise's reputation.

Similarly, if the inventory management system is not integrated with the ERP system, the inventory levels may be incorrect, leading to incorrect supply chain decisions, stockouts, and other problems that can significantly impact the enterprise's bottom line.

Salvage value of legacy hardware and IT best practices are also essential factors to consider when developing a business case for an ERP implementation. However, their impact on the enterprise is typically lower than that of interdependent systems.

Vendor selection is another critical factor that can impact the success of an ERP implementation. However, it is not as significant as interdependent systems, as a poor vendor selection decision can often be remedied by changing vendors or renegotiating contracts.

In summary, while all the given options are important factors to consider when developing a business case for an ERP implementation, overlooking interdependent systems can cause the greatest impact on the enterprise's success. Therefore, it is essential to carefully consider all interdependent systems and ensure that they are adequately integrated with the ERP system.