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ERP Upgrade vs. ERP Replacement: The Case of Gulf Telecom
Abstract
ERP systems life cycle may extend in some business organizations up to fifteen years or more. Nevertheless, the time comes in the life of an ERP system when there is a need to evaluate and compare the value of continuing to use the existing ERP system version against the option to upgrade to a higher version of the same system or having it replaced all together by a different system. In many cases, this translates into a critical management-sponsored mission designating a dedicated team or task force to investigate the feasibility of the alternative options, and to report on the preferred option with a recommendation of the way forward and implementation approach. This case reflects the investigations of Gulf Telecom Company (GTC) in exploring the viability and feasibility of its ERP options to support and provide the grounds for a management decision to mark the next phase of the ERP in the organization. The case describes the approach that was adopted by Gulf Telecom and highlights the challenges to accomplish the mission successfully and any lessons learned from this experience.
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