Selection and critical success factors in successful ERP implementation

Author(s):  
Hooshang M. Beheshti ◽  
Bruce K. Blaylock ◽  
Dale A. Henderson ◽  
James G. Lollar

Purpose – The purpose of this paper is to investigate factors that contribute to the successful implementation of enterprise resource planning (ERP) systems in manufacturing firms. Design/methodology/approach – The qualitative research method was used to study six diverse manufacturing firms in Virginia. A semi-structure method of data collection was used for the analysis. Findings – The ERP software has emerged as a key enabler of system integration in organizations to reduce redundancy, improve efficiency, productivity and performance. Firms implement ERP not only to improve operations efficiency but to be more responsive to the customer needs in the global economy. The findings provide insights on the factors that these large and global manufacturing firms consider to be important to the success of ERP implementation and utilization. Research limitations/implications – The study is limited to large manufacturing firms and does not consider service industries or small and medium enterprises. Practical implications – A considerable amount of time and capital are required for the acquisition and implementation of ERP systems. The results are useful to managers of manufacturing companies who are interested in using, modifying or upgrading an integrative technology software system, such as ERP. Originality/value – This empirical study provides an in-depth analysis of factors that motivate firms to consider ERP systems, factors that are important when acquiring the system, key factors to implementation and cultural adjustments following implementation. To the best of our knowledge, no single study has examined all of these issues in one report.

2014 ◽  
Vol 37 (2) ◽  
pp. 186-206 ◽  
Author(s):  
Pairin Katerattanakul ◽  
James J. Lee ◽  
Soongoo Hong

Purpose – This study is an exploratory study aiming to explore whether different groups of manufacturing firms with similar business characteristics and enterprise resource planning (ERP) implementation approaches would experience different business outcomes from ERP implementation. The paper aims to discuss these issues. Design/methodology/approach – Cluster analysis with data collected from 256 Korean manufacturing firms was employed to identify groups of manufacturing companies having similar business characteristics and adopting similar ERP implementation approaches. Then, the differences in business outcomes from implementing ERP systems among these groups of companies were examined. Findings – Company size and production approaches are useful variables for grouping manufacturing firms into clusters of companies with similar characteristics. Additionally, large manufacturing firms with make-to-order production approach have significantly higher perceived benefits from implementing ERP systems regarding external coordination and competitive impact than other firms do. Research limitations/implications – This study was conducted in only one industry of one country and used the data collected by self-reporting instrument. Thus, further studies conducted in other industries and/or other countries and using more objective measures would allow more generalizability of the findings of this study. It would also be interesting to investigate the effects of the logistics practices adopted by small manufacturing firms even though these practices may be more suitable for large manufacturing firms. Originality/value – This study contributes to the literatures on benefits obtained from implementing ERP systems as none of the previous studies has focused on the relationship among business characteristics, ERP implementation approaches, and business outcomes from ERP implementation.


Author(s):  
Reinaldo José De Freitas ◽  
Helder Gomes Costa ◽  
Valdecy Pereira ◽  
Eduardo Shimoda

Purpose – This paper aims to identify criteria that can be used in assessing the successful implementation of ERP (enterprise resource planning) in large companies. Design/methodology/approach – Based on a systematic review conducted in 74 selected articles from a survey performed in Scopus bases and Institute for Scientific Information (ISI) Web of Science, an initial set of 34 criteria was defined and used for evaluating the implementation of ERP systems. This set was submitted to a sample of 111 experts in ERP for evaluation via electronic forms provided through the EncuestaFácil site. The collected data were treated by applying the Content Validity Ratio (CVR) method. The criteria selection is based on the integration of two methodological approaches: systematic review and the application of CVR method for validation of ratings issued by experts. Findings – As a result of the research, 25 criteria were identified and validated to evaluate the implementation of ERP systems, focusing on large Brazilian companies. Practical implications – The research results can be very useful to managers using ERP systems and have significant utility for organizations that develop ERP systems. Originality/value – According to studied literature, no previous study has used this integration in the identification of criteria for assessing the implementation of ERP systems in large Brazilian companies. On the other hand, the use of these two approaches assured confidence in the validity of the findings.


Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake

Purpose The purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects. Design/methodology/approach A literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap. Findings The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development. Research limitations/implications The development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model. Originality/value This paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.


Kybernetes ◽  
2019 ◽  
Vol 49 (3) ◽  
pp. 629-659 ◽  
Author(s):  
Faisal Mahmood ◽  
Abdul Zahid Khan ◽  
Rahat Hussain Bokhari

Purpose Despite more than two decades of experience regarding the adoption and implementation of enterprise resource planning (ERP) systems in organizations, ERPs success is questionable. Though ERPs success stories are published in past research studies, the failure rate of ERP systems is relatively high. The purpose of this study was to find issues and challenges and assess the degree of criticality of these issues/challenges faced by organizations during ERP implementation. Design/methodology/approach For doing systematic review/research synthesis systematic literature review (SLR) was carried out considering research studies published within the time period, i.e. 1999-2018. Three major steps such as planning, conducting and reporting were followed to proceed further in this study. This study attempted to accomplish a critical review of 53 studies out of 103 studies identified, which were published in reputable journals to synthesize the existing literature in the ERP domain. The studies selected have almost addressed different challenges/issues faced by small and large organizations during ERP implementation. Findings Research synthesis/SLR led to the identification of 31 issues/challenges, which may be termed as most critical based on their occurrence/frequency in past studies included. The topmost ten issues/challenges amongst 31 identified include top management approach, change management, training and development, effective communication, system integration, business process reengineering, consultants/vendors selection, project management, project team formation, team empowerment/skilled people and data conversing/migration. However, other issues/challenges identified such as security risks/data security, cloud awareness, functionality limitations, service level agreements and subscription expenses are more related to cloud ERPs. Originality/value The current study is unique in its kind, focusing on the issues and challenges faced by organization during implementing ERP projects. Moreover, this study contributes to understanding and further analyzing management capabilities for developing remedial measures while planning the implementation of an enterprise system in their organizations prior to the occurrence of different issues and challenges ahead. The study also led to understanding and explaining socio-technical issues and their severity.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
José Luís Martins ◽  
Carlos Santos

Purpose This paper aims to investigate the changes caused by the use of the enterprise resource planning (ERP) systems in the accounting of organizations at different levels: organizational structure; processes; and employees. Design/methodology/approach The authors use a qualitative methodology with interpretative analysis through the study of five cases in Portuguese companies that implemented the Sage ERP X3. The data collection was carried out mainly through semi-structured interviews. Findings The results indicate that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees. These changes interact and cause modifications among themselves, which makes it difficult to identify the origin and sequence of changes related to the implementation of the systems. It was possible to identify the direct impact of the ERP system on the change of processes, which is reflected in the functions of the employees, as well as to verify that the ERP system provides the opportunity for companies to change their organizational structure. Originality/value This paper contributes to the accounting literature by providing evidence on the influence of ERP systems on organizational aspects of accounting in the Portuguese reality, attesting that the successful implementation of the ERP system is associated with changes in the organizational structure, reengineering of processes and changes in the functions of employees.


2006 ◽  
Vol 21 (3) ◽  
pp. 165-175 ◽  
Author(s):  
Amany R. Elbanna

Claudio Ciborra's improvisation argument provides a realistic dynamic account of how organisational practices address technology. This was developed from the study of malleable open-ended technology, but little research has occurred to investigate the theory's validity within different settings. This paper seeks to address this gap, by examining improvisation in the context of a rigid highly structured technology. It presents findings from the successful implementation of an Enterprise Resource Planning (ERP) system within a large international organisation, which was subsequently defined by the ERP vendor as being an ‘exemplary site’. Through the theoretical lens of Actor Network Theory, the paper reveals the improvisation, enactments and constant work around the plan that took place in dealing with the high contingencies of ERP implementation. The study extends the discussion on improvisation and contributes to an already illuminating argument. It invites practitioners to reflect on ERP implementation practice and review their evaluation methods.


2017 ◽  
Vol 23 (5) ◽  
pp. 936-956 ◽  
Author(s):  
Pamella Drummond ◽  
Fernando Araujo ◽  
Renata Borges

Purpose The purpose of this paper is to investigate the large case of enterprise resource planning (ERP) system implementation in Latin America, performed between 2011 and 2015 in a Brazilian, multinational, publicly traded company. Using the organizational change literature as background, this research analyzes the barriers and factors of success by comparing the perspectives of ERP implementers and end-users, identifying success factors and barriers of this project. A conceptual framework is developed. Design/methodology/approach The case study method was used to conduct an in-depth analysis of the interviews that captured the complexity of this process. The change management project team had exactly 11 implementers, of whom ten were interviewed, and 45 end-users, of whom 20 were interviewed. Findings The results suggest that end-users and implementers have opposite perceptions regarding the role of previous experience, organizational processes, capacity for change, leadership behavior, and the interaction of business units. In general, implementers presented a more critical perception of the change processes. Conversely, implementers and end-users agreed that business needs and cultural values facilitated the ERP implementation, whereas organizational structure and geographic dispersion constrain it. Research limitations/implications This research could have analyzed the results by region or by production line. Originality/value The major contribution of this research is to offer a conceptual framework to analyze different views about the same project. This study deepens the understanding of ERP implementations by adding studies from other countries and different cultures. For practitioners, this case study aims to offer the experiences and perceptions that implementers and end-users had about the largest ERP implementation system in Latin America.


2015 ◽  
Vol 21 (2) ◽  
pp. 222-249 ◽  
Author(s):  
Bambang Purwoko Kusumo Bintoro ◽  
Togar Mangihut Simatupang ◽  
Utomo Sarjono Putro ◽  
Pri Hermawan

Purpose – The purpose of this paper is to identify the existence of studies, by exploring the current literatures, on interaction among actors in Enterprise Resource Planning (ERP) implementation. Design/methodology/approach – A new classification framework is offered, along with the two dimensions of ERP implementation: determinants and outcomes, to provide four types of research classes. Hundreds of articles were searched by using keywords from journal data bases. The selected articles were grouped based on the new classification of ERP implementation, followed by an in-depth analysis by using the Context, Intervention, Mechanism, Outcomes logic and the system of systems methodologies (SOSM) framework. Findings – The interactions among actors in ERP implementation have been overlooked, although there is almost always disagreements, misperceptions, and conflicts. Managing the interactions among actors is considered important because common failures in ERP implementation are often caused by mismanaged interactions among the key actors. Unfortunately, the existing research has so far shown a small effort to study how the actors’ interactions are managed. Research limitations/implications – One key limitation of this research is that the number of actor-related articles is lesser than the factor-related articles. Further research should be conducted to explain how to manage the interactions among the actors in each stage of ERP implementation. Practical implications – A guidance to prepare the entire organization prior to the ERP implementation to seriously consider the typical conflict among actors on each stage of ERP implementation and its causal factors and how to resolve them. Social implications – The importance of understanding typical conflict among actors, its causal factors, and how to resolve them can be extended to other projects or social phenomenon. Originality/value – This proposed framework is new to the ERP literature and serves to identify and expand further research on actors’ interactions to improve the success of ERP implementation. This is the first research to identify the interactions among actors in ERP implementation by using a clearly structured methodological approach, which is conducted by critically reviewing the ERP implementation literature.


2018 ◽  
Vol 24 (4) ◽  
pp. 943-964 ◽  
Author(s):  
Hamdan Mohammed Al-Sabri ◽  
Majed Al-Mashari ◽  
Azeddine Chikh

Purpose The purpose of this paper is to consider the question of what is an appropriate enterprise resource planning (ERP) reference model for specifying areas of change in the context of IT-driven ERP implementation and through the model matching. There are other implicit goals to increasing the awareness of the reference models, as this highlights the principles embedded in ERP systems and explains the classification of reference models, which is useful in terms of the reuse of knowledge. Design/methodology/approach In this paper, a comparison between ERP reference models is conducted using a suitable decision-making technique and the final results are discussed. The comparison depends on nine criteria related to conceptual ERP reference models: scope, abstraction, granularity, views, purpose, simplicity, availability, ease of use for model matching, and target audience. Findings This study concludes that the business process reference model is best for specifying areas of change in the context of IT-driven ERP implementations. The final ranking of the alternatives based on all criteria places the system organizational model second, followed by the function and data/object reference models, in that order. Originality/value This paper is one of very few studies on the selection of appropriate ERP reference models according to the ERP implementation approach and model matching factors. This research also provides an in-depth analysis of various ERP reference model types.


2019 ◽  
Vol 16 (1) ◽  
pp. 2-34
Author(s):  
Henk-Jan van Roekel ◽  
Martijn van der Steen

PurposeThis paper aims to uncover how implementation practices affect the unfolding of integration as the ideal of an enterprise resource planning (ERP) system. In this way, the authors aim to provide a better understanding of the ways in which the ideal of integration affects the complexity of ERP systems.Design/methodology/approachThis paper interprets a case study of the implementation of an ERP system in a Dutch company.FindingsThe paper highlights how different variations of an object of integration were enacted during an ERP implementation. The authors observe how the interests of the various actors were not always served by the variations of integration in circulation. They illustrate how this resulted in a failure of the network to be folded into a taken-for-granted configuration of constituent parts. Consequentially, having multiple variations of integration contributed to increased complexity of the system.Originality/valueThe paper highlights how multiple variations of a single object of integration are brought into circulation. Such perspective enables a better understanding of some of the complexities associated with ERP implementations.


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