Exploring An Alternative Method of Evaluating the Effects of Erp: A Multiple Case Study

2009 ◽  
Vol 24 (3) ◽  
pp. 251-268 ◽  
Author(s):  
Sylvestre Uwizeyemungu ◽  
Louis Raymond

Previous research has already established that compared to other types of investments, information technology (IT) investments are insufficiently or not at all evaluated. This can be partly explained by the lack of adequate IT evaluation methods and tools. In the case of enterprise resource planning (ERP) systems whose effects on organizational processes and performance are intrinsically profound and wide-ranging compared to those of traditional IT limited to some spheres of organization, evaluation activities may be an issue of great concern. This study thus aims to propose and test an alternative evaluation method adaptable to the organizational context, making it possible to measure the contribution of an ERP system to organizational performance in all its aspects. Combining a process-based model and a scorecard model, the proposed method was first designed from a review of information systems evaluation literature. It has then been validated and refined through a multi-case study of manufacturing firms: an in-depth pilot case study was conducted, and thereafter the study was replicated on two other cases. Results show that the method proposed here enables organizations to determine the extent to which the firm's operational and overall performance has been impacted by the adoption and use of ERP systems, through the automational, informational, and transformational effects of ERP on their business processes. From a practical point of view, three contributions must be mentioned: the proposed method allows for a strong contextualization of its application, it is action-oriented, and it allows comparison across organizations even though organizational contexts may totally differ.

Enterprise Resource Planning (ERP) systems are implemented in companies to improve their business processes. An ERP system entails extensive functional and technological aspects during its implementation. Teaching ERP systems for computer science students implies addressing these two aspects: ERP functionality and technological features. It is a challenge for teachers to design practical experimentation that students can perform in the teaching environment, due to the prerequisite of a deep understanding of the business processes, business user requirements, and the technological complexity of ERP systems. In order to improve student skills in ERP systems, we encourage active learning among students. In this chapter, we present a methodology using open and closed practicals to learn about both technical and functional aspects of ERP systems. Using these practicals allows us to prepare and organize this teaching/ learning process.


2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


Author(s):  
Joseph R. Muscatello ◽  
Diane H. Parente

Enterprise resource planning (ERP) systems, if implemented correctly, have shown that a firm can gain strategic and tactical advantages over their competition who do not implement such systems. However, with failure rates estimated to be as high as 50% of all ERP implementations, companies can be negatively impacted by a poorly performing ERP system. The research on ERP has focused on events leading to the selection, evaluation, and implementation of the ERP system. The intent of this updated research effort is to capture new theories that can help practitioners successfully manage ERP systems by performing a post-ERP implementation examination of eight corporations and a pertinent research review. This chapter is based on a qualitative research design involving case-study methodology. The propositions derived from the case study form a broad set of considerations that influence the success of an ERP system.


Author(s):  
Cesar Alexandre de Souza ◽  
Ronaldo Zwicker

The 90’s witnessed an impressive growth of Enterprise Resource Planning (ERP) systems in the market of corporate IT solutions. For instance, O´Leary (2000) reports that a single ERP system (SAP´s R/3) is used by more than 60% of the multinational firms. Among the explanations for this phenomenon are the competitive pressures suffered by the companies that have forced them to seek alternatives for cost reduction, differentiation of products and services and integration of their business processes. The ERP systems evolved exploiting the need for quick deployment of integrated systems to meet these new business requirements, while companies were (and still are) under pressure to outsource all the activities that are not embraced by their core business.


Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


Author(s):  
Christoph Beckers ◽  
Oliver Marz ◽  
Lutz M. Kolbe

Given the increased stakeholder focus on sustainability, companies are facing the challenge of systematically collecting and processing sustainability information. Identifying sustainability indicators will become imperative for small and medium-sized enterprises (SME), especially in the extremely segmented and highly specialized food industry – entailing opportunities, but also costs and risks. This article is a management approach and a basis for discussing the classification of sustainability reporting systems in existing Information Technology (IT) infrastructures from an economical point of view. Supported by a case study from the meat industry, the authors discuss to what extent sustainability information is reflected by an existing Enterprise Resource Planning (ERP) System, or which investments would be required for companies to facilitate the communication of sustainability data. Additionally and as a result, the article gives a schematic explanation how process changes can be evaluated economically by capturing and processing sustainability information, and thus how to decide in favor of or against a certain level of IT-based environmental information processing functionality.


2000 ◽  
Vol 15 (4) ◽  
pp. 245-265 ◽  
Author(s):  
M. Lynne Markus ◽  
Sheryl Axline ◽  
David Petrie ◽  
Cornelis Tanis

Enterprise resource planning (ERP) packages touch many aspects of a company's internal and external operations. Consequently, successful deployment and use of ERP systems are critical to organizational performance and survival. This paper presents the results of a study of the problems and outcomes in ERP projects which was conducted under the sponsorship of an ERP systems vendor. Two basic research questions were addressed. First, how successful are companies at different points in time in their ERP experiences and how are different measures of success related? (That is, can early success be followed by failure and vice versa?) Second, what problems do ERP adopters encounter as they implement and deploy ERP and how are these problems related to outcomes? The findings showed that the success of ERP systems depends on when it is measured and that success at one point in time may only be loosely related to success at another point in time. Companies experience problems at all phases of the ERP system life cycle and many of the problems experienced in later phases originated earlier but remained unnoticed or uncorrected. These findings suggest that researchers and companies will do well to adopt broad definitions and multiple measures of success and pay particular attention to the early identification and correction of problems.


2012 ◽  
Vol 1 (1) ◽  
pp. 68-72
Author(s):  
Muthuvelayutham C ◽  
Sugantha lakshm T

An Enterprise Resource Planning (ERP) system is composed of a basic transactional system and a management control system. Sammon et al. (2003) describesthese 2 components of ERP systems as the solution to “operational” integration problems and “informational” requirements of managers. Thus, the extreme standardisation of business process inherent in ERP systems creates huge volumes of data without providing a clue for how to exploit it and may therefore not beneficial from a decision-making point of view. In this paper, decision-making theory and models are reviewed, focusing on how an ERP implementation might impact on these constructs. This paper is an analysis about centralisation of decision making in an organisation and its impact on performance at a local level.


2010 ◽  
Vol 3 (4) ◽  
pp. 34-50 ◽  
Author(s):  
Bernabé Escobar-Pérez ◽  
Tomás Escobar-Rodríguez ◽  
Pedro Monge-Lozano

Enterprise Resource Planning (ERP) systems integrate information from different departments in one common database for an entire organization. They have demonstrated their efficacy in a number of companies of different types. However, a problem arises in organizations with highly differentiated cultural areas; often such areas have traditionally had independent information systems and control over the interests of their area, such as hospitals. This case study analyzes the process of an ERP system implementation in a hospital. The study’s objective is to identify, by means of this qualitative research technique, the principal technological objectives that were set in the process of implementation, which of those objectives were achieved, and the deficiencies that have subsequently become evident.


Author(s):  
Biswadip Ghosh ◽  
Tom Yoon ◽  
Janos Fustos

Enterprise Resource Planning (ERP) systems, such as SAP, feature a rich set of integrated business applications. However, to maximize the long term benefits from ERP implementations, organizations need to careful manage the post-implementation phase and focus on supporting end users to achieve better fit between their business processes and the ERP system features. This study develops a research model based on the resource-based view (RBV) of the firm and finds support for a positive and complementary relationship between continuous training resources, functional fit capability and business process success. An increase in continuous training resources increases the functional fit capability for the organization and is seen to improve business process success. The results support the need to focus on continuous end user training throughout the post implementation phase as a key contributor to ERP systems success for any organization.


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