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ownership,and avoiding problems of developing and retaining IT staff.Regan and Virzi [15] argued that it is more difficult towork in the governmental sector than in a private company,because of the need to be able to defend proposals in public hearings.That application also involved the use of ERP to reduce State jobs,which led to difficulties with the state information worker union.
3.Pros and cons of ERP outsourcing
Bryson and Sullivan [2] cited specific reasons that a particular ASP might be attractive as a source for ERP.These included the opportunity to use a well-known company as a reference,opening new lines of business,and opportunities to gain market-share in particular industries.Some organizations may also view ASPs as a way to aid cash flow in periods when they are financially weak and desperate for business.
There are risks in outsourcing.Bryson and Sullivan noted that in many cases,cost rise precipitously after the outsourcing firm has become committed to the relationship.One explanation given was the lack of analytical models and tools to evaluate alternatives.These tradeoffs are recapitulated in Table 2.
Bryson and Sullivan noted reasons that an ASP might shirk their commitments,such as ASP success,or conversely ASP bankruptcy.Their site might be attacked and vandalized,or destroyed by natural disaster.Each organization must balance these factors and make their own decision.The following cases demonstrate two organizations that reached different conclusions.
4.Cases
Two cases are presented to demonstrate tradeoffs involved in ERP outsourcing decisions.The first is representative of the conventional approach,with vendor software installed within the organization.The second relates GMs move to outsourced ERP.
Russ Berrie & Co.is a firm retailing gift related items [17].In 1998 and 1999 they spent $19.2 million to install a system from SAP.However,they experienced problems in tracking incoming orders,and some customer orders vanished from the system.Shipments were delayed or canceled.The firm wrote off $10.4 million to end the project,and reverted to its old systems.In 2001 they were experiencing inefficiencies in their supply chain,and considered options for a more contemporary system.Big 5 consultants were contacted,and provided precise predictions of expense reduction that were viewed by Berrie as unrealistic.Four ERP vendors were contacted (Intentia International,JDEdwards,Oracle,

所有权,并且避免由于发展和训练新的IT员工而产生的问题. Regan和Virzi认为在*机关工作比在私企工作更困难,因为需要能够公平地为提议进行辩解. 该项运用也包括了使用ERP来减少国家工作,从而导致了同*信息工作组...