Pak Elektronic Limited
Pak Electronic Limited: Converting Systems to ERP
Pak Elektron Limited (PEL), a large manufacturer of consumer home appliances and power transformers, initiated an information system conversion to a Tier 1 enterprise resource planning (ERP) system in 2007. After the Phase I of implementation by 2011, Pak Elektron was facing a liquidity crisis that hindered implementation of further modules. Legacy systems were still being widely used, and staff had grown uncomfortable and resistant to change.
The contents of this case report include problem identification, decision criteria evaluation, alternative analysis, and recommendation. Those aforementioned sections will address Pak Elektron’s problems in …show more content…
General ERPs, like Oracle’s EBS system, share a similar weakness; they are made for general organizations, and therefore may not accommodate a specialized fit. PEL has other options with regards to systems implementation and selection, such as developing custom ERP software based on the current legacy system that disrupts the business model as little as possible. PEL can also purchase and implement separate, more specialized suites such as Salesforce for CRM, a cloud based accounting system for financial reporting (Wave), amongst others.
It terms of cost, this is an expensive option as customized ERP software is extremely expensive and requires development time. Purchasing individual modules for certain business functions will also be more expensive than a general system due to reduced bundle savings. A customized ERP system will help the silos reintegrate more efficiently due to more in-line processes supported within the system. Customizable modules would ideally improve efficiency of each individual silo.
3. Full rollout of ERP modules - Implementation of Phase II and III
Budget is the biggest constraint in this option. However, this will ensure full migration away from legacy systems, and will address the concern of generating standardized reports and ensuring data