Enterprise Resource Planning Evaluation Research Articles

The S curve: A dynamic view of in ERP evaluation

Previous Enterprise Resource Planning (ERP) evaluation methods using closed-form solutions have ignored the unique characteristics of ERP’s life cycle. We propose a lifecycle model based on simulation and stochastic processes to capture and evaluate ERP’s value, including additional key factors. Our results show that accounting for the life cycle, ERP value differs from traditional wisdom and supports decision making from various factors and scopes, considering ERP’s implementation’s unique characteristics.

Establishing an evidence-based 9D evaluation approach for ERP post-implementation

PurposeThe purpose of this paper is to propose a systematic and customisable framework, titled the 9D approach, aiming to evaluate the enterprise resource planning (ERP) systems as well as to identify potential socio-technical problems, misfits and deficiencies that can cause ERP failure during the system post-implementation phase.Design/methodology/approachThe proposed 9D ERP evaluation framework includes nine dimensions and 85 evaluation criteria. This theoretical framework is then used in a six-step evaluation process based on a mixed-methods design. A case study involving a large-size private company in China was used as an exemplification to illustrate how the proposed 9D approach can be applied in practices.FindingsThe findings of the study clearly demonstrated that after the ERP “go-live” point, companies still experience many challenges and problems in the post-implementation phase. These problems can be located in very diverse organisational, systemic and personnel aspects of the company, as well as across different functional areas and organisational levels. The proposed 9D approach was demonstrated to be an efficient and systematic tool to investigate and explore such ERP problems in an in-depth level within the organisational context.Research limitations/implicationsThis study contributes to the theory of IS evaluation in general, and provides valuable insights into the ERP post-implementation evaluation in particular.Practical implicationsThe proposed ERP evaluation approach forms a sound base for continuous ERP improvement and contributes to sustain seamless alignment between ERP and its organisational context. The customisable feature of the framework offers flexibility and enables its use by companies of all sizes, any sector, and any country.Originality/valueTo the best of the researchers’ knowledge, this is the most extensive and comprehensive framework for the post-evaluation of ERPs proposed hitherto. The need for this new framework was grounded on the argumentation of the drawbacks of existing ERP measurement and evaluation studies that simply focus on success rather than the more critical failure factors.

A study of enterprise resource planning (ERP) system performance measurement using the quantitative balanced scorecard approach

Enterprise resource planning (ERP) systems have been used in integrating information and accelerating its distribution across functions and departments with the aim to increase organizations’ operational performance. Thus, it is worth measuring ERP system performance based on its impact to critical performance of an organization: this requires a systematic method that bridges ERP performance measurement and key organizational performance. The hierarchical balanced scorecard (HBSC) model with respect to multiple criteria decision-making is such a systematic approach to ERP performance measurement. An ERP evaluation framework that integrates the balanced scorecard dimensions, linguistic variables, and non-additive fuzzy integral provides an objective approach to measuring both the performance level of the ERP system and its contribution to the strategic objectives of high-tech firms. Taking Taiwan’s high-tech firms as an example, this study demonstrates the effectiveness of this integrated approach to measure the performance of ERP systems at the post-implementation stage under evaluators’ subjective, uncertainty, and vagueness judgments.

ERP Selection: The SMART Way

Abstract Enterprise resource planning (ERP) systems implementation projects are challenging and resource consuming. There are several phases in the ERP implementation process. One of the earliest and most critical phases is the ERP selection phase. If an organization selects an inadequate ERP to fit their needs, the project will most likely destine to fail. Research and practice have provided several cases of ERP project failures because of a faulty selection process. No matter what amendments the adopting company undertakes in the later phases, if there is no fit, there is no success. This research, presents an explanatory case study, which employed a simple multi-attribute rating technique (SMART)-based ERP selection method. The selection method was mainly based on developing process maps for all the critical business processes inside the organization, and then checking the degree of compliance of the potential ERP packages with those developed process maps. In addition, other factors were also included in the ERP evaluation and selection process. As the ERP was assured to be matching the business requirements, the method and the selection factors have been proven adequate for the selection process. In addition, this minimizes the risk of a non-fitting ERP system and consequent project failures.

Analytic Hierarchy Process for Selection of Erp Software for Manufacturing Companies

Enterprise Resource Planning (ERP) systems are popular as an IT enabled tool, which integrates different functional areas of business. ERP systems are implemented as a total business solution that supports major functionalities of business. However, many of the implementations are not success stories. Most post implementation problems are due to the inappropriate selection of systems. This paper describes multi-criteria decision model using Analytic Hierarchy Process for the selection of ERP systems for manufacturing companies. First, ERP evaluation criteria are developed by using past literature and through a questionnaire distributed among Sri Lankan manufacturing companies. Seven major criteria are identified and under each criterion several sub-criteria are identified. Selection of the best suited ERP system leads to a multi-criteria decision making problem as ERP systems should be evaluated based upon many criteria. Using the identified main and sub criteria, an Analytic Hierarchy Process (AHP) model is developed for ranking the ERP software. An example of a case is presented to show the actual implementation of AHP model. Expert Choice software is used to solve this AHP model.

Benchmarking of ERP Systems Implementation: Case Study

Enterprise resource planning (ERP) is a computer-based information system for enterprise integration. ERP integrates information from all functional areas of enterprise to support management processes. The implementation of ERP is expensive and time consuming process but today enterprises have no another way. The effective enterprise management is impossible without on-line information about business processes executed in all functional areas. The ERP implementation is a strategic decision that influences enterprise development for many years and ERP systems should evolve together with enterprises. In this paper the benchmarking methodology is proposed that enables evaluating the implementation of an ERP system in three manufacturing companies completing make-to-order production. The enterprises make small series or single, prototype production. The research is based on benchmarking of the enterprises that implemented ERP systems in the past years. It involves comparison of the most important financial ratios and statistical data extracted from the ERP system. Results of data analysis are a basis for a proposed procedure of ERP evaluation. The procedure enables not only evaluating the ERP system implementation but also determining functional areas that require support, changing business processes or functionality of ERP. The proposed benchmarking methodology presents how much the ERP system is adapted to enterprise requirements. Examples presented are based on a case study of polish enterprises.

Managing ERP system evaluation and selection in SMEs using the six-imperatives methodology

Enterprise Resource Planning (ERP) adoption involves initiating the appropriate business process changes and information technology upgrades to enhance enterprise performance, quality, costs, flexibility and responsiveness. While the number of articles in ERP implementation is substantial, limited attention has been given to the ERP adoption by Small- and Medium-sized Enterprises (SMEs). Motivated by the organisation fit of the ERP concept, we propose a structured methodology for ERP system evaluation and selection which can be easily used by SMEs, as it provides the necessary information for their decision-making process. This article describes the ERP evaluation and selection methodology followed by an industrial Greek company. The proposed methodology consists of a framework built upon six imperatives, which generate a number of ERP objectives materialised through a set of levers. The analysis results in the identification of tailor-made ERP objectives, which, in turn, are used in a multiple criteria model as part of the decision-making process to select, from a list of alternatives, a suitable ERP vendor.

Enterprise Resource Planning implementation at Small and Medium Sized Enterprises: an initial study of the Greek market

The research reported in this article is part of a larger project involving Enterprise Resource Planning (ERP) adoption in Greece aiming at the investigation of the criteria that affect actual implementation. A structured questionnaire has been developed based on a combination of two frameworks: the first one is an extension proposed to the Markus and Tanis model, and the second one is based on a previously developed methodology (the six imperatives) for ERP evaluation, selection, and implementation. The paper discusses the frameworks, methodology, and preliminary findings from 40 companies of various industries. The results indicate a number of factors affecting ERP implementation and some differences in choices and activities between Small and Medium Sized Enterprises (SMEs) and larger companies concerning ERP adoption. One important finding is that many SMEs do not follow a structured methodology for ERP system implementation and they are not familiar with techniques such as business process reengineering and change management.

Editorial

Editorial