Implementation Of ERP System Research Articles

Towards ERP success in SMEs through business process review prior to implementation

Purpose – ERP systems are not the exclusive concern of large companies anymore. More and more small and medium sized enterprises (SMEs) are now engaging with the implementation and exploitation of this type of system. However, reports of ERP failure are numerous and frequent. Very often, this failure results from technical and implementation problems. But even more frequently, it is due to lack of preparation, by the companies themselves, for the implementation process. The purpose of the study reported in this paper was to identify and explore ways in which SMEs may need to prepare themselves before implementing ERP systems. Design/methodology/approach – The research took a Cypriot SME as a case study and adopted an inductive approach supported by in-depth interviews as the main method of data collection. The qualitative data collected were analysed by using a thematic analysis approach. Subsequently, a rich picture and concept maps were used to represent the findings generated. Findings – The study identified that business deficiencies and problems, which can impact potential ERP adoption and usage in SMEs, can be localised across business processes boundaries, such as sales order processing, stock control, and bill of materials management, etc. These business problems were found to be attributed to a variety of organisational, technical and human-related reasons. Therefore, this study established that in order to implement ERPs successfully, organisations may require changes in people's work practices and understanding of technology, ownership and control of business processes, as well as organisational wide policies. Research limitations/implications – This study contributes to the knowledge of ERP preparation and business process improvement in SMEs. Practical implications – The findings of the paper provide useful insights for both academic and practitioners who are thinking of implementing ERP systems. The paper contributes to the body of literature on issues that SMEs may need to reflect upon before embarking in a costly and resource intensive process of ERP implementation. Originality/value – Business process improvement is traditionally considered as the result of an ERP project phase. This is how the large majority of the academic literature and the totality of marketing information by ERP vendors portray it. In fact, the reality of practice shows a different scenario with frequent reports of failure and inadequate ERP implementation. This paper aims at breaking with this myth, by proposing that ERPs cannot resolve the large variety of deficient business processes and internal problems that may exist in SMEs. Therefore, this study argues that SMEs need to prepare in advance by engaging in business process reviews prior to the ERP implementation that is engaging in a pre-implementation or preparation phase.

Case Study of Database Security in Campus ERP System

Database Security essentially refers to protection of the information content in database. In general, the decision regarding who should be allowed access to the databases or alternatively who should be denied access to the database is dictated by the security policies of the organization concerned. The implementation of ERP systems has been problematic for much organization because of one of the reason is lack of database security. The aim of this study is to identify the risks and controls used in ERP database access, with the objective to understand the ways in which organizations can minimize the business risks involved. In this paper are describe different types of vulnerability of database and Suggestions are offered in resolving the issues for database security in ERP system

Integration of the information systems in the production process: a case study

This paper evaluates the execution of an ERP – enterprise resource planning in a production process. The changes that were made to processes to make them compatible with ERP modules and adaptations that were required by the ERP implementation are presented. The presented study is different from the normal patterns of a vertical implementation, since its application is not direct. In order to use the standard modules of the ERP system, the internal processes were embellished and the data collection steps were integrated into the production process (production orders, inventory, production, daily consumption, daily output). The case study shows that the ERP implementation caused an improvement of the processes in the areas adjacent to production (purchasing, logistics, distribution, supply and sales). In conclusion, this paper presents the main advantages and disadvantages of the ERP system implementation, as well as some considerations and recommendations for the future ERP implementations.

Studying key users’ skills of ERP system through a comprehensive skill measurement model

Given to the significant role of enterprise resource planning systems (ERP) in the current organizations, several studies have been accomplished regarding these systems. The Main reason for the present research is having a small share in enhancement of success rate of ERP systems implementation through an applied study. In this study two purposes are pursued. First, this article intends to determine the most important skills required by key users (Also called power users and super users.) of ERP system as one of the most major members of ERP implementation team. Another purpose is to examine the skills shortages of these users in organizations under study and both of these purposes are obtained based on a comprehensive model. This research includes two major parts. First, based on experts’ opinion, a model is developed to determine and measure required technical, human, and conceptual skills as well as skills shortages of those involved in ERP implementation such as key users. Then, in second part, based on the above model and by means of a field study and studying thirteen Iranian organizations, the desirable amount (Amount of skill that key users expected to have.) and existing amount (Amount of skill that key users have at present.) of skills of key users are measured in each one of the technical, human, and conceptual categories. Then in order to determine and evaluate skill shortages, the difference between these two amounts in each category is examined. In this paper, human and conceptual skills are determined as the most important skills of key users in ERP implementation. Also, results confirm that key users have skills shortages in three kinds of main skills (i.e., technical, human, and conceptual) in the organizations under study. Moreover, key users in large companies suffer more from skills shortages than ones in SMEs.

Investigating Critical Success Factors Affecting ERP Implementation in Chinese and Pakistani Enterprises

Carrying with itself the most effective, efficient & cross-functional integrative capabilities, the importance in adoption & usage of ERP systems has significantly increased in vibrant and dynamically responding business settings of today. This study attempts to present the ERP system’s implementation success in terms of organizational impact, on time and under allocated budget by qualitatively examining relationship of each of the identified critical success factors (CSFs) to project’s implementation success in enterprises of a developing country, China, by using validated responses from 12 organizations, using a questionnaire survey approach. Summary of survey’s results are then presented in a tabular form to get a clearer view of the impact of CSFs during ERP system implementation. Findings confirm that 10, 9 and 1 out of the 20 proposed factors that are identified from the literature are critical, least critical & not critical respectively. Findings are then compared, in brief, with the enterprises of another developing country, Pakistan, to check for the similarities & differences. This study intends to enrich understanding on the most significant factors to trim down chances of failure regarding ERP project implementation success and is anticipated to contribute to the on hand body of knowledge in this regard.

A Framework for ERP Systems in SME Based on Cloud Computing Technology

Present Enterprise Resource Planning () offers expensive models which are hard to implement in Small and Medium Enterprises (SME) due to budget limitations.Moreover, current ERP systems are associated with several issues such as mutual synchronization of multi -typed resources, limited customization, bulky upgrading cost, solution integration, industry functionality, backup hedge and technology updates. These issues render ERP systems implementation painful, complex and time consuming and generate the necessity of a massive change in ERP framework to enhance ERPsystems infrastructure and functionality. Cloud Computing (CC) platforms possess the ability to overcomeERP systems discrepancies with cost-effective, customized and highly available computing resources.The goal of this research is to merge ERP and CC benefits together to reduce the factor ofexpenditure cost and implementation delaysthrough a proposed framework. For this purpose, we firstly analyze the prominent issues in current ERP systemsthrough a comprehensive comparisonbetween ERP before and after moving to CC environment. Secondly, we propose a generic frameworkfor “Cloud-based ERP systems” in favour of SME. The proposed framework follows multi -instance based cloud infrastructure that initiates different ERP instances for different industries. Finally, the feasibility and efficiency of the proposed framework is tested through the study of the ERP system in “Awal” Company.

Influencia de una cultura organizativa orientada hacia la calidad en los beneficios de la implantación de un sistema de gestión de recursos ERP

Purpose: Organizational culture focused on quality management aims to meet customer needs and enhance teamwork, being oriented toward a dynamic process of continuous improvement. The purpose of this paper is to analyze whether, indeed, the quality-oriented culture has an effect on the management of business processes. In doing so, we analyze their relationship with the benefits of a resource management system or ERP. Design/methodology/approach: A survey is used to collect data, with valid questionnaires obtained for 200 Spain based respondents. Empirical analysis utilises Structural Equation Modelling (SEM). Findings: The results confirm that firm's commitment with quality management, customer focus, and confidence of workers has a positive effect on the results of operational, strategic and managerial benefits derived from an ERP system implementation. However, there is not relationship between customer focus and organizational benefits, neither to increase system capacity. Originality/value: The present study analyzes the relationship between quality-oriented culture and the resource management systems of the firm clarifying their strengths and limitations. In this sense, the customer orientation may limit the flexibility of business as require a lot of resources, and generate dissatisfaction among workers resulting from the attention to customer complaints.

조선해양 산업에서의 ERP 구축 사례 연구

As many organizations have adopted and implemented ERP systems, concerns about ERP performance also have increased. Former researches studied the ERP implementation of general large or medium size enterprises but there are not enough studies on ERP systems of a specific industry domain. In this paper, we introduce a case study on ERP adoption methodology of global leading company 'D' in shipbuilding and marine engineering industry. We examined ERP implementation background, method and scope and evaluated ERP performance in perspective of both quantitative and qualitative approaches. Quantitative research usually examines ERP performance based on financial statements and qualitative study typically examines organization change or improvement. As a result, ERP implementation in shipbuilding and marine industry can improve quantitative aspects such as cost, human resource and organization performance. As qualitative analysis, business process and tools can be unified and management transparency can be improved by ERP implementation. The result of this paper will be useful guideline for organizations which are considering ERP systems.

Selection Process of ERP Systems

Abstract Background: The application and introduction of ERP systems have become a central issue for management and operation of enterprises. The competition on market enforces the improvement and optimization of business processes of enterprises to increase their efficiency, effectiveness, and to manage better the resources outside the company. The primary task of ERP systems is to achieve the before-mentioned objectives. Objective: The selection of a particular ERP system has a decisive effect on the future operation and profitability of the enterprise. The qualitative correlation between the size of enterprises, market position, etc. and the applied selection criteria for ERP systems should be analysed as to whether which criteria are used at multinational enterprises or at SMEs. Methods/Approach: Our research is grounded in a literature review and case studies of everyday practice related to the introduction, implementation and roll-out of ERP systems. Results: The dominant critical success factor of ERP introduction seems to be “ERP software suitability”, “Information quality”, “ERP vendor quality”. Conclusion: The set of criteria on one hand shows strong correlation with non-functional requirements codified in standards, and on the other hand with usual functional requirements for ERP systems.

Proposing a Model to Assist Indian Micro, Small and Medium Scale Enterprises in Their ERP Implementation

Purpose The purpose of this article is to present the findings of a study based on analysis of ERP implementation issues in context to Indian micro, small and medium scale enterprises with the objective of highlighting the key issues confronting them. Design/Methodology/Approach The research study is based on wide variety of literature review focusing on issues influencing ERP adoption. Responses were collected on the basis of questionnaires and personal interviews given by officials who were closely involved in the implementation process. Initially, factor analysis has been performed on SPSS with principal component analysis using Varimax rotation and the factors were grouped on the basis of factor loading. Further to this, the researchers developed a model by SEM. Findings The analysis showed statistically significant relationship between the predictor and the outcome variables for the four hypotheses. Research Limitations/Implications Besides the identified issues, there may be other factors that need to be explored. There is also a scope to enhance this research study by taking different industries into consideration and also by factoring the state of the economy and by increasing the number of respondents. Practical Implications This study will help information system managers who plan to implement ERP systems in their organisations. It will help those with useable but less than satisfactory ERP implementations to understand the underlying issues why they had problems and it will help them to avoid facing problems in future projects. It will also help those who failed to implement their planned ERP system when they try again; it will help those who have not yet tried. Even ERP vendors can take input from this study in their implementation approach while targeting SME sector. Originality/Value There is no published literature that followed a similar approach in identification of critical issues in implementing ERP projects in small and mid-sized organisation in India or any other developing economy.

In-House versus In-Cloud ERP Systems: A Comparative Study

This paper provides a framework for comparison between the in-house implementation of ERP systems versus the in-cloud implementations. The paper first establishes a framework for the comparison based on three factors: pre-live, i.e., the implementation methodologies of both options; post-live, i.e., cost, time and the user-friendliness of the systems; and other factors, i.e., security and scalability. Results show that in-cloud systems are faster to implement, less costly and easier to use and scalable. In-house system, compared with in-cloud, gives organizations more control and hence many organizations deem them more secure.

The concurrent application of lean production and ERP: Towards an ERP-based lean implementation process

Lean production and enterprise resource planning systems are often quoted as being the two most important strategies for achieving competitive advantage in today's global manufacturing environments. Though IT has traditionally been viewed as a contributor to waste within lean production, we suggest that modern developments in IT and the onset of hybrid “push-pull” production control mechanisms have allowed ERP and lean approaches to converge towards a state where ERP systems can in fact be used to support the deployment of lean practices. This paper analyses typical lean and ERP implementation processes contained within the scientific literature, and by further examining a concurrent implementation process in real-time, we develop and propose a process for ERP-based lean implementations. Our findings suggest that the implementation of a contemporary ERP system can act as a catalyst for the application of lean production practices.

Business Process Requirements for Indonesian Small Medium Enterprises (SMEs) in Implementing Enterprise Resource Planning (ERP) and ERP Systems Comparison

Based on Central Agency on Statistic (Badan Pusat Statistik – BPS), the growth of SMEs in Indonesia is increasing rapidly. In order to increase their competitive advantage, SMEs need to implement ERP system. However, most of ERP systems in the today market are very complex and not suitable for Indonesian SMEs. This paper presents the requirements of Indonesian SMEs’ main business processes which are focusing in marketing, distributing, selling and production processes by randomly distributing questionnaires to SMEs. Based on our analysis, those processes are urgently needed to be standardized and implemented in ERP system due to their strategies to increase their market share. In addition, this study also conducts the comparison of ERP systems through thorough observation to give insight for SMEs owners if they choose to buy an ERP system. According to our observation, SAP Business One or Compiere Community Edition could be selected by SMEs due to their detailed and complete processes.

Integrating CSF and change management for implementing campus ERP system

Institutions of higher learning are currently facing a challenging environment, which demands the integration of business processes. Most institutions are facing reduction in operating budgets but at the same time the need for technology and business services have also increased. Enterprise resource planning ERP is a type of business technology that is rapidly catching the attention of institutions of higher learning in enhancing the administrative and academic functions. Without a solid history of successes and failures, implementers are at a disadvantage in knowing how best to implement ERP systems to enable them to provide operational and strategic benefits to their owners. This makes the task of implementing these systems more challenging. Due to these problems, this research is being carried out in order to develop an integration strategy, discovering important critical success factors and the necessary processes of implementing ERP system in a private institution of higher learning in Malaysia. In this study, one institution has been chosen for the case study. The needs of this institution in implementing ERP and the problems faced by the institution are being documented. The findings will be used as a ground work for more intensive study for all Malaysian higher learning institutions.

Critical Issues Across the ERP Life Cycle in Small-and-Medium- Sized Enterprises: Experiences from a Multiple Case Study

The paper reports on a multiple case study conducted in five Small-and-Medium-Sized Enterprises (SMEs). These companies have implemented ERP systems and the focus is on the critical issues, activities and key actors across different stages of the ERP life cycle in these enterprises. SMEs have less resources and competencies about complex ERP systems compared to larger companies. Thus ERP projects have proved to be risky and costly for SMEs. SMEs can easily be an easy prey for experienced vendors and consultants and end up with a system far from what they expected.

ERP India Web Portal (erp-india.org)

ERP India started as an online community (a yahoo discussion group) in 2003. The purpose of the group was to explore the implementation and use issues of ERP systems in India. Members from other groups and forums were invited to join and the group started discussing instantly relevant topics. Membership was free. A minimal registration process was required to become and member and participate in the discussions. The discussions were moderated to remove junk and product promotional messages.

ERP software selection with MCDM: application of TODIM method

Any ERP software in the market cannot fully meet the needs and expectations of manufacturing companies, because each company, which looks for implementing ERP system, runs its business with different strategies and goals. Therefore, enterprise resource planning ERP software selection is an important and critical decision process. Another aspect of this problem is that multi-disciplinary content reveals the multi-criteria decision making as the appropriate field of study. In this study, by employing TODIM method, which allows the usage of both qualitative and quantitative data, an example, which involves ERP software selection process of a steel forming and hot dip-galvanising firm located in Izmir, Turkey, is provided by using a proposed framework. A new path toward ERP software selection is designed for the decision makers in various industries include manufacturing companies. In order to deal with the complex calculations in the decision making process, the proposed framework is formed as an applicable tool for all decision makers in various industries.

Factors affecting ERP system effectiveness in post-implementation stage within Malaysian manufacturing companies

Enterprise resource planning ERP system has become one of the main pre-requisites for many companies enabling them to compete in the local and global market, a price of entry to gain a competitive advantage in the global economy, and a backbone for e-business as well as for the whole supply chain. Many companies are still reluctant to implement ERP system and therefore they will not be able to join the supply chain of several global and local companies where ERP system has become a pre-requisite and a price of entry for the global economy. This study has investigated the impact of ERP system on supply chain performance with respect to top management support, employee involvement, and cultural fit in the context of Malaysian manufacturing companies that are using ERP system and this is to fill up the gap in post-implementation stage. The study found that employee involvement, top management support, and cultural fit partially affects positively and significantly the relationship between ERP system and supply chain performance.

The relationship between management accounting systems and ERP systems in a medium-sized firm: a bidirectional perspective

The relationship between ERP systems and MAS is a relevant topic for accounting scholars. This relationship has often been studied by observing the influence of the implementation of ERP systems on MAS in terms of its impact on accounting tools, available information or the accountant's role. A limited number of studies have explored, instead, the inverse relationship, namely that one concerning the way MAS can influence the design, the implementation and the use of ERP systems. This paper aims to contribute to filling this gap. The bidirectional relationship between ERP systems and MAS is analysed through a case study, carried out in a medium-sized Italian firm. The findings show that the context, in this case a medium-sized firm, can play a relevant role in influencing the way the ERP system implementation affects the MAS, especially with regard to the controller's role and tasks. At the same time, they also shed light on how the existing MAS, as well as the one which is influenced by the implementation of the ERP system, can shape the customization and the use of the ERP system.

Assessing the Impact of Erp Implementation in the small Enterprises

Abstract For a SME (small and medium-size enterprise) to operate competitively in an international and local market, it is necessary for it to deal with its tasks in an efficient and practical way; this can be achieved by the systematic analysis of the undertaken tasks in relation to the company’s organizational and economical ability for their completion. The author suggests in this paper that the assessment of such an implementation depends on a firm's intention to use the ERP system to achieve strategic goals. The author discusses the issue of the Balance Scorecard method being used to assess the impact of an ERP system implementation on the performance of a small service enterprise. Using a research results, the author illustrates the possibility to assess the implementation of an ERP system in the small enterprises.