Product details

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Published by: Harvard Business Publishing
Published in: "Harvard Management Update", 1996

Abstract

SAP''s R/3 corporate computing software is the market leader among completely integrated systems, which allow a company to control all major business processes, from inventory management to payroll, in real time on a single software platform. R/3 perhaps represents the tangible embodiment of reengineering, and the way in which more and more of the routine activity of organizations will be managed in the future. Integrated systems like it are spreading rapidly through big companies. This trend is occurring even though an SAP implementation effort costs $7. 5 million and takes 141 person-months to complete. Once the system is in place, top management can gain instant access to sales and marketing information. But that may only put more pressure on managers who are having a bad quarter.

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Abstract

SAP''s R/3 corporate computing software is the market leader among completely integrated systems, which allow a company to control all major business processes, from inventory management to payroll, in real time on a single software platform. R/3 perhaps represents the tangible embodiment of reengineering, and the way in which more and more of the routine activity of organizations will be managed in the future. Integrated systems like it are spreading rapidly through big companies. This trend is occurring even though an SAP implementation effort costs $7. 5 million and takes 141 person-months to complete. Once the system is in place, top management can gain instant access to sales and marketing information. But that may only put more pressure on managers who are having a bad quarter.

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