Global Enterprise Resource Planning Research Articles

CONTROLLING THE CHANGING OF MANAGEMENT ACCOUNTING PRACTICES IN THE ENTERPRISE RESOURCES PLANNING ENVIRONMENT

The aims of this research is to give empirical evidence of changes in management accounting practices (MA) by examining the effects of changes in data quality, information quality and management accounting tasks on the efficiency and effectiveness of accounting, and indirectly on change in management accounting after the adoption of an enterprise resource planning (ERP) systems. Empirical analysis of the study used primary data from a survey of 29 manufacturing companies with 102 CFO respondents, accounting managers and business controllers, with a response rate of 28.43%, providing significant support for the proposed model. Structural equation modeling (SEM) approach with testing tools using partial least square (PLS) is used in this research. The linear thing with the results of previous research is the same, it was found that the erp implementation time is the determinant of significant MA changes, while the difference from previous researchers is in the end user, where the company that has adopted the ERP system has just felt a greater MA change when compared to users early on. The results showed that the implementation of global ERP and the use of business intelligence tools (BI) were significantly related to changes in MA practices.

Impact of parent-subsidiary conflict on ERP implementation

Purpose – In spite of the large body of literature on success factors of enterprise resource planning (ERP) implementation, there is a need to explore its multinational dimension. The purpose of this paper is to explore the impact of the conflict between parent and subsidiary on the process of ERP implementation in a multinational enterprise (MNE). Design/methodology/approach – Using an interpretive case study methodology, this paper analyses the theoretical frameworks of parent-subsidiary conflict and applies them to interpret an in-depth case study and generate a set of managerial prescriptions. Findings – Theoretical analysis and case evidence suggest that managing parent-subsidiary conflict is a critical success factor of ERP implementation in MNEs. Research limitations/implications – This case relates to a diversified multinational group producing a variety of materials through subsidiaries. The data collection includes multiple sources in the company, and strong theoretical development provides a high level of generalizability. The paper shows that managers should consider the impact of conflict from the planning stages of any multinational ERP implementation. Practical implications – A detailed set of practical managerial prescriptions is derived from case and theoretical analysis. These prescriptions provide guidance to multinational managers planning a successful global ERP rollout. Originality/value – Although parent-subsidiary conflict is clearly a major factor in multinational ERP implementations, this topic has never been analysed in detail in the literature. This paper breaks new ground applying grounded theoretical frameworks of parent-subsidiary conflict to an implementation case, and providing managerial guidance for implementation decisions.

Reconciling global and local needs: a canonical action research project to deal with workarounds

AbstractThis paper discusses how research with practitioners can help reconcile the top‐down requirements of headquarters with the bottom‐up local needs in the context of global information systems. Based on a 12‐month canonical action research project that took place at the Chinese branches of a French multinational corporation, our research revealed and addressed workarounds that the Chinese users of a company‐wide global enterprise resource planning system had put in place that were not expected nor desired by company headquarters. From the local users' point of view, they were necessary to deal with Chinese legislation and cultural practices, but from the French headquarters' point of view, they meant that many of the potential gains of global standards were lost. Activity theory was used as a focal theory to analyse each of these workarounds and business process management as an instrumental theory to design solutions to the workarounds. We describe in detail how we used canonical action research to successfully deal with exemplars of each of the three types of workaround identified (data adjustments, process adjustments and parallel‐system adjustments). Unusually, the research relates to post‐implementation change rather than to that looking at change occurring before and during implementation. We argue that canonical action research and the particular combination of activity theory and business process management are appropriate for dealing with workarounds and this has not been demonstrated previously. Further, our research – deemed successful by managers, users and researchers alike – took place in China where previous literature suggests only limited success with such global systems.

Investigating ERP Misalignment between ERP Systems and Implementing Organizations in Developing Countries

The adoption of enterprise resource planning (ERP) systems by organizations from developing countries has increased dramatically. The continued growth of ERP adoption in developing countries is accompanied by high failure rates which makes it impossible for these organizations to enjoy the full realization of benefits. Many ERP systems’ failures are associated with the misalignment between the ERP requirements and the expectations of the client. 70 percent of ERP implementations fail to deliver the anticipated benefits with estimates that developing countries make up some 10 to 15 percent of global ERP sales (Hawari & Heeks, 2010). ERP systems do not usually fit the requirements of the implementing organizations in developing countries because of the different business practices, and legal and government regulations. There is a sizeable gap between the assumptions and requirements built into the designs of ERP systems and the realities of the client. Until academics, organizations, vendors and consultants understand better the phenomenon of misfit, the realization of benefits from ERP systems is likely to remain difficult and unpredictable on practical perspective. This paper seeks to investigate the complexities inherent in the ERP systems, which subsequently result in misalignment and this will equip decision makers to better prepare strategies that will increase the probability of realizing the desired results. This paper will contribute directly or indirectly to the reduction of failure rate of ERP projects on developing countries associated with misfit.

An empirical study of enterprise resource planning integration

Enterprise Resource Planning (ERP) systems are very popular systems for information management in the global business environment. We investigate which of five levels of ERP integration contribute to a global or local ERP implementation strategy. The five levels of ERP integration are: system-specification, system-user, island of technology, organizational, and socio-organizational integration. We conducted an empirical study in the United States that included 102 ERP professionals from two user groups, global ERP system users and local ERP system users. We discovered that system-specification and organizational integration significantly influence the implementation of local ERP systems while system-specification and socio-organizational integration significantly influence global ERP service implementation. The model explains 44 percent and 52 percent respectively of ERP adoptions within the two groups.

Successful global ERP rollout: a case study

The 21st century is an era of globalisation. With the rapid changes in the global economic environment, many companies are aware that they need to promote their competitiveness by adopting more information technology, such as enterprise resource planning (ERP). Implementing ERP into a company is difficult, let alone implementing a global ERP system. The purpose of this paper was to demonstrate how to successfully implement a global ERP rollout by using the case study method. The lessons learned from this effort should help to support further academic and practitioner literature, especially in the area of global ERP rollout.

Enterprise Resource Planning Systems Implementation in a Global Subsidiary Organization: Lessons Learned

ABSTRACT This article describes the implementation of an enterprise resource planning (ERP) implemented by British Petroleum (BP) Worldwide, from the perspective of one of its subsidiary organizations, BP Singapore. The ERP solution, an internally developed system, was implemented globally by BP worldwide quite successfully from a global perspective, though not without challenges at the local level. This study examines the process of implementing a global ERP solution at the local subsidiaries, and the unique problems that may be encountered in force-fitting a global solution at the local level. Among the issues and problems experienced by the subsidiary are higher-than-anticipated costs, longer development times, lack of technical expertise, and compromises in business processes. The findings of the study could be helpful in formulating coping mechanisms in implementing global ERP solutions.

The adoption and use of business intelligence solutions in Australia

The global Enterprise Resource Planning (ERP) systems industry blossomed in the 1990s automating back office operations. These systems have now become essential infrastructure for many companies. These companies are now extending these transaction-based systems to support more strategic and complex decisions. Accordingly, the ERP vendors have developed a range of solutions focusing on Business Intelligence (BI) in various functional areas. However, the question must be asked is there an evolutionary nature to the adoption and use of these various solutions similar to that which occurred with ERP systems. This paper adopts a two pronged research methodology to investigate the adoption of BI solutions in Australian companies. The first methodology involved a web-based survey to identify BI implementation patterns. This was then expanded upon using a case study approach. The research identified an evolutionary maturity to how BI solutions are adopted in Australian companies.

HR’s role in implementing JTI’s global ERP system: How HR’s focus on change management was key to a successful ERP project

In 1999, JT International was comprised of over 100 disparate companies. A global ERP (Enterprise Resource Planning) system was vital to transform the company into a modern multinational. Find out how HR and the change management team focused on the “people” side of change to ensure the four‐year project came in on time and on budget.

A case study of a centrally managed ERP implementation for manufacturing plants of a global corporation

Xerox Corporation implemented a global Enterprise Resource Planning (ERP) system to effectively manage its 52 worldwide manufacturing plants and lay the foundations of future e-commerce solutions. The strategic objective for implementing a global manufacturing ERP system at Xerox is for management to gain insights into real-time financial visibility and total material requirement consolidation. This paper gives an insight into the planning and implementation process of this Oracle Manufacturing and Financial System (OMAF) from the perspective of Xerox's leading electronics manufacturing plant, Southern California Manufacturing Operations, (SCMO) located in El Segundo, California. An efficient implementation model and associated metrics, based on gap analysis, were developed to manage the activities. Gap analysis also proved to be an effective method for balancing the interests of the process owners, end-users, implementers and all other stakeholders of the project.

ERP implementation failures in China: Case studies with implications for ERP vendors

Chinese enterprise resource planning (ERP) vendors have been able to defend the challenge from global ERP leaders such as SAP and Oracle. This article seeks possible reasons for major international ERP vendors not being able to dominate the Chinese ERP market. Taking an ensemble view of technology, we conceptualize ERP systems as being embedded in complex social contexts, which heavily influence ERP implementation and use. Based on this conceptualization, we contend that a historical perspective and a social-cultural perspective can offer a rich understanding on ERP implementations in China. From the historical perspective, this paper describes China's ERP evolution and compares it with the ERP evolution in Western countries. From the social-cultural perspective, five cases in which foreign ERP vendors have failed in their Chinese implementations are presented and analyzed. Eight factors are identified which have contributed to ERP failure. Implications of the findings for future ERP implementations in China are discussed.

Web-ERP: the new generation of enterprise resources planning

The explosion of the Internet has affected many facets of work style in the manufacturing industry; yet all indications are that the revolution is still in its infancy. Manufacturing enterprises need to reshape their working model in order to sustain a competitive edge in this global manufacturing era. An Internet-enabled enterprise resource planning (ERP) is crucial to the continuous development of a manufacturing enterprise. Accordingly, in this paper, the authors propose an implementation model called Web-based Object-Oriented Model (WOOM) to implement an ERP system under a global perspective, which provides the framework, channel and the interface necessary to build a Web-based ERP system in a global business environment. The proposed model aims to provide a basis for the manufacturers to implement ERP in a systematic manner. By using advanced development techniques, a sophisticated, yet easy to use, building model that provides a total solution for all areas of a global ERP system has been implemented.