1. Three effects of ERP failure :
a) Serious financial problems.
b) Massive distribution problems e.g. many stores lacking Hershey products before Halloween and Christmas.
c) FoxMeyer announced a $500 million lawsuit against SAP and Andersen Consulting (now Accenture).
2. Four factors that organization should assess in choosing ERP vendor :
a) Flexible – ERP vendor must be able to quickly respond to the changing needs of the organization.
b) Modular and open – ERP vendor must have an open system architecture, meaning that any module can be interface, with or detached whenever required without affecting the other modules.
c) Comprehensive – ERP vendor must be able to support a variety of organizational functions for a wide range of businesses.
d) Beyond the company – ERP vendor must support external partnerships and collaboration efforts.
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