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Article
Publication date: 6 September 2010

Yahia Zare Mehrjerdi

This article provides a brief review of current literature on ERP and its implementation in industries. To fully understand the ERP software key points, risks, benefits…

8378

Abstract

Purpose

This article provides a brief review of current literature on ERP and its implementation in industries. To fully understand the ERP software key points, risks, benefits, critical success factors, implementation issues, and the fundamental on that are identified and reviewed. Some applications of ERP in public places, government offices, and industries are briefly discussed and four related cases are reviewed.

Design/methodology/approach

Provides a background on enterprise resource planning implementation, key elements of ERP, and review four important cases from the literature in that regard. To better introduce ERP software to new users the risks and benefits of that are discussed in item lists and each are described briefly.

Findings

Pointed to key benefits and risks of enterprise resource systems software and studies four cases from the literature related to the ERP implementation.

Originality/value

Due to the fact that a better management of a system is related to the full understanding of the technologies implemented and the system under consideration, sufficient background on the enterprise resource planning is provided. The lack of research papers and conceptual papers related to risk‐benefit analysis of ERP systems is a motivation for conducting this research.

Details

Business Strategy Series, vol. 11 no. 5
Type: Research Article
ISSN: 1751-5637

Keywords

Article
Publication date: 1 December 2000

Subba Rao Siriginidi

Highlights the need for business process reengineering and impact of IT on enterprises. Presents in detail the evolution, modules, verticals, model, management concerns…

7249

Abstract

Highlights the need for business process reengineering and impact of IT on enterprises. Presents in detail the evolution, modules, verticals, model, management concerns and network infrastructure, selection of software packages and enterprise preparedness for implementation of enterprise resource planning. Briefly describes the key features of popular ERP packages, viz. MFG/PRO, IFS/AVALON, SAAP, BAAN IV, J.D. Edwards, Marshal (R) and PeopleSoft. Concludes that enterprises definitely attain best business practices by implementing ERP, in an effort to position for success in the twenty‐first century.

Details

Business Process Management Journal, vol. 6 no. 5
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 6 March 2007

S.C. Lenny Koh and Mike Simpson

This paper seeks to show how enterprise resource planning (ERP) could create a competitive advantage for small‐ and medium‐sized enterprises (SMEs).

4825

Abstract

Purpose

This paper seeks to show how enterprise resource planning (ERP) could create a competitive advantage for small‐ and medium‐sized enterprises (SMEs).

Design/methodology/approach

The main methods used in this study were questionnaires and interviews based on the application of an uncertainty diagnosing business model. Data were collected, using a questionnaire administrated to 126 SMEs, in the form of percentage contributions of the underlying causes of uncertainty (structured in the business model) on product late delivery. Analysis of Variance (ANOVA) was carried out in SPSS to analyse the effects of the underlying causes of uncertainty in SMEs.

Findings

ERP could create a competitive advantage in delivery for SMEs by being responsive and agile to change, but not to uncertainty. Results suggested that only a few features in an ERP system were used to deal with change due to uncertainty. It was found that SMEs generally use their ERP system to generate a plan for production and use it as a guideline. SMEs concurrently use a range of buffering or dampening techniques to tackle uncertainty for crating a competitive advantage in delivery.

Research limitations/implications

The application of the business model in SMEs has provided useful knowledge to make‐to‐stock (MTS), make‐to‐order (MTO) and mixed‐mode (MM) manufacturing enterprises in which underlying causes of uncertainty were significantly affecting their product late delivery performance.

Originality/value

This is a highly original application of an uncertainty diagnosing business model to SMEs using ERP systems.

Details

Benchmarking: An International Journal, vol. 14 no. 1
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 1 September 2005

S.C. Lenny Koh and Mike Simpson

The aim of this paper is to investigate how enterprise resource planning (ERP) systems could create a competitive advantage for small and medium‐sized enterprises (SMEs)…

6067

Abstract

Purpose

The aim of this paper is to investigate how enterprise resource planning (ERP) systems could create a competitive advantage for small and medium‐sized enterprises (SMEs). The objectives of this study are to examine how responsive and agile the existing ERP systems are to change and uncertainty, and to identify the types of change and uncertainty in SME manufacturing environments.

Design/methodology/approach

A mixed methodology is used in this study, which involves literature review, questionnaire survey and follow‐up, in‐depth telephone interviews. An uncertainty diagnosing business model is applied to collect data from SME manufacturers in make‐to‐stock (MTS), make‐to‐order (MTO) and mixed mode (MM) manufacturing environments in a structured manner, and to analyse the effects of the underlying causes of uncertainty on product late delivery in MTS, MTO and MM manufacturing environments in SMEs. Some 108 enterprises responded (86 per cent response rate), of which 64 are SMEs. Analysis of variance (ANOVA) is carried out in SPSS to analyse the effects of the underlying causes of uncertainty on product late delivery in MTS, MTO and MM manufacturing environments in SMEs.

Findings

ANOVA results show that a different group of underlying causes of uncertainty significantly affects the product late delivery performance in MTS, MTO and MM manufacturing environments in SMEs. This study found that ERP could improve responsiveness and agility to change, but not to uncertainty. SMEs could create a competitive advantage by being more responsive to change in the ERP system before generating purchase and work order. ERP systems could not deal with uncertainty due to its stochastic and unpredictable nature. SMEs use a range of buffering or dampening techniques under uncertainty to be competitive in delivery.

Originality/value

It can be concluded that the application of the business model in SMEs that use ERP has provided useful knowledge about the significant underlying causes of uncertainty that affect product late delivery performance in MTS, MTO and MM manufacturing environments. Using this knowledge, similar SMEs could then prioritise the effort and devise suitable buffering or dampening techniques to manage the causes of uncertainty and hence prevent any changes to the ERP system.

Details

Journal of Manufacturing Technology Management, vol. 16 no. 6
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 7 September 2015

Tsung-Sheng Chang, Hsin-Pin Fu and Cheng-Yuan Ku

The purpose of this paper is to propose an implementation model for enterprise resource planning (ERP) based on resource-based view, and using the dynamic capability…

1121

Abstract

Purpose

The purpose of this paper is to propose an implementation model for enterprise resource planning (ERP) based on resource-based view, and using the dynamic capability theory as its theoretical foundation. This model includes: the establishment of the objectives of the implementation, an assessment of the available resources and the scope of the implementation, the redesign/integration and organizational learning during the process, the implementation of the system, and the measurement and evaluation of its performance.

Design/methodology/approach

An integrated circuits design company in Taiwan was used in a case study to examine the validity of the proposed model.

Findings

When the proposed ERP implementation model was applied in this study, the results show that organizational coordination, system-process redesign and integration, and organizational learning are the critical strategies for enterprises, in order to reduce the risks during the implementation of ERP projects.

Practical implications

This model can help enterprises recognize the resources needed when implementing an ERP. In addition, they need to consider the reliability of these resources, as this will increase the efficiency of the implementation, and thus the probability of success.

Originality/value

Studies of past models in the implementation of ERP have been conducted in various industries. There is a need for further studies that evaluate the different concepts in terms of the effectiveness of specific methods, in order to enhance the probability of successfully implementing a dynamic system. This paper is one of the first to explain how an enterprise can implement an ERP that is based on the theory of dynamic capabilities. The case study illustrates the important, critical success factors.

Details

Journal of Manufacturing Technology Management, vol. 26 no. 7
Type: Research Article
ISSN: 1741-038X

Keywords

Article
Publication date: 19 May 2021

Mehmet Kirmizi and Batuhan Kocaoglu

This study explores the influencing factors of the enterprise resource planning (ERP) readiness stage on project success immediately after go-live from the project…

1135

Abstract

Purpose

This study explores the influencing factors of the enterprise resource planning (ERP) readiness stage on project success immediately after go-live from the project manager’s perspective.

Design/methodology/approach

The influencing factors of the ERP readiness stage are explored through the literature and expert review sessions and are embedded in Kotter’s change management model. A survey-based empirical study is conducted among ERP project managers in Turkey in 2019 utilizing principal component analysis and multiple regression analysis to reveal the direct relation of influencing factors and project success.

Findings

Results show that the proposed model explains 65.179% of the variation with four components. The association of components through regression analysis reveals that project planning and management, employee commitment and change management directly relate to the ERP project success. Yet, surprisingly top management support is not directly correlated. Therefore, the results suggest that influencing factors of such long projects are to be evaluated by the stages of the project life cycle.

Research limitations/implications

This research is limited to the project managers’ perspective in Turkey and the readiness stage of the project life cycle.

Practical implications

The objectives of this research serve as a guideline for ERP project managers to consider the success factors in terms of ERP project phases. This ensures that the project manager allocates optimum resources to the right factors at the right time.

Originality/value

Despite numerous studies in the ERP readiness stage, this study opens new ways of future research while filling several gaps. First, the ERP readiness phase is discussed with a theoretical approach through Kotter’s change management model. Second, the influencing factors of the ERP readiness stage on ERP project success from the project manager’s perspective are explored, and factor structures are revealed. Then, the association of the factors with ERP project success of “immediately after go-live” is empirically tested.

Article
Publication date: 2 February 2018

Amgad Badewi, Essam Shehab, Jing Zeng and Mostafa Mohamad

The purpose of this paper is to answer two research questions: what are the ERP resources and organizational complementary resources (OCRs) required to achieve each group…

3580

Abstract

Purpose

The purpose of this paper is to answer two research questions: what are the ERP resources and organizational complementary resources (OCRs) required to achieve each group of benefits? And on the basis of its resources, when should an organization invest more in ERP resources and/or OCRs so that the potential value of its ERP is realised?

Design/methodology/approach

Studying 12 organizations in different countries and validating the results with 8 consultants.

Findings

ERP benefits realization capability framework is developed; it shows that each group of benefits requires ERP resources (classified into features, attached technologies and information technology department competences) and OCRs (classified into practices, attitudes, culture, skills and organizational characteristics) and that leaping ahead to gain innovation benefits before being mature enough in realising a firm’s planning and automation capabilities could be a waste of time and effort.

Research limitations/implications

It is qualitative study. It needs to be backed by quantitative studies to test the results.

Practical implications

Although the “P” in ERP stands for planning, many academics and practitioners still believe that ERP applies to automation only. This research spotlights that the ability to invest in ERP can increase the innovation and planning capabilities of the organization only if it is extended and grown at the right time and if it is supported by OCRs. It is not cost effective to push an organization to achieve all the benefits at the same time; rather, it is clear that an organization would not be able to enjoy a higher level of benefits until it achieves a significant number of lower-level benefits. Thus, investing in higher-level benefit assets directly after an ERP implementation, when there are no organizational capabilities available to use these assets, could be inefficient. Moreover, it could be stressful to users when they see plenty of new ERP resources without the ability to use them. Although it could be of slight benefit to introduce, for example, business intelligence to employees in the “stabilizing period” (Badewi et al., 2013), from the financial perspective, it is a waste of money since the benefits would not be realised as expected. Therefore, orchestrating ERP assets with the development of organizational capabilities is important for achieving the greatest effectiveness and efficiency of the resources available to the organization. This research can be used as a benchmark for designing the various blueprints required to achieve different groups of benefits from ERP investments.

Originality/value

This research addresses two novel questions: RQ1: what are the ERP resources and OCRs required to achieve the different kinds of ERP benefits? RQ2: when, and on what basis, should an organization deploy more resources to leverage the ERP business value?

Details

Business Process Management Journal, vol. 24 no. 1
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 August 2004

E.M. Shehab, M.W. Sharp, L. Supramaniam and T.A. Spedding

Enterprise resource planning (ERP) system solutions are currently in high demand by both manufacturing and service organisations because they provide a tightly integrated…

22104

Abstract

Enterprise resource planning (ERP) system solutions are currently in high demand by both manufacturing and service organisations because they provide a tightly integrated solution to an organisation's information system needs. During the last decade, ERP systems have received a significant amount of attention from researchers and practitioners from a variety of functional disciplines. In this paper, a comprehensive review of the research literature (1990‐2003) concerning ERP systems is presented. The literature is further classified and the major outcomes of each study are addressed and analysed. Following a comprehensive review of the literature, proposals for future research are formulated to identify topics where fruitful opportunities exist.

Details

Business Process Management Journal, vol. 10 no. 4
Type: Research Article
ISSN: 1463-7154

Keywords

Article
Publication date: 1 April 2000

Atul Gupta

Enterprise resource planning (ERP) is a set of applications that automate finance and human resource departments and help manufacturers handle jobs such as order…

13169

Abstract

Enterprise resource planning (ERP) is a set of applications that automate finance and human resource departments and help manufacturers handle jobs such as order processing and production scheduling. This paper attempts to provide an overview of an ERP system along with the real experiences of its implementation. Reports results of a survey of several ERP companies and considers factors such as future trends in ERP including developments such as Web‐based procurement applications and outsourcing of ERP applications. Suggests some challenges for ERP, such as the need to ensure global compatibility and flexibility.

Details

Industrial Management & Data Systems, vol. 100 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

Article
Publication date: 1 August 2006

S.C.L. Koh, M. Simpson, J. Padmore, N. Dimitriadis and F. Misopoulos

To examine enterprise resource planning (ERP) adoption in Greek companies, and explore the effects of uncertainty on the performance of these systems and the methods used…

4359

Abstract

Purpose

To examine enterprise resource planning (ERP) adoption in Greek companies, and explore the effects of uncertainty on the performance of these systems and the methods used to cope with uncertainty.

Design/methodology/approach

This research was exploratory and six case studies were generated. This work was part of a larger project on the adoption, implementation and integration of ERP systems in Greek enterprises. A taxonomy of ERP adoption research was developed from the literature review and used to underpin the issues investigated in these cases. The results were compared with the literature on ERP adoption in the USA and UK.

Findings

There were major differences between ERP adoption in Greek companies and companies in other countries. The adoption, implementation and integration of ERP systems were fragmented in Greek companies. This fragmentation demonstrated that the internal enterprise's culture, resources available, skills of employees, and the way ERP systems are perceived, treated and integrated within the business and in the supply chain, play critical roles in determining the success/failure of ERP systems adoption. A warehouse management system was adopted by some Greek enterprises to cope with uncertainty.

Research limitations/implications

A comparison of ERP adoption was made between the USA, UK and Greece, and may limit its usefulness elsewhere.

Practical implications

Practical advice is offered to managers contemplating adopting ERP.

Originality/value

A new taxonomy of ERP adoption research was developed, which refocused the ERP implementation and integration into related critical success/failure factors and total integration issues, thus providing a more holistic ERP adoption framework.

Details

Industrial Management & Data Systems, vol. 106 no. 7
Type: Research Article
ISSN: 0263-5577

Keywords

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