ERP issues and challenges: a research synthesis

Kybernetes ◽  
2019 ◽  
Vol 49 (3) ◽  
pp. 629-659 ◽  
Author(s):  
Faisal Mahmood ◽  
Abdul Zahid Khan ◽  
Rahat Hussain Bokhari
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Management Training ◽  
Research Synthesis ◽  
Management Approach ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Team Empowerment ◽  
Research Studies

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.

An integrated framework for ERP system implementation

2017 ◽  
Vol 25 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
System Implementation ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
Critical Success

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.

Effect of business characteristics and ERP implementation on business outcomes

2014 ◽  
Vol 37 (2) ◽  
pp. 186-206 ◽  
Author(s):  
Pairin Katerattanakul ◽  
James J. Lee ◽  
Soongoo Hong
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Manufacturing Firms ◽  
Manufacturing Companies ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Business Outcomes ◽  
Make To Order ◽  
The Relationship

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.

Selection and critical success factors in successful ERP implementation

2014 ◽  
Vol 24 (4) ◽  
pp. 357-375 ◽  
Author(s):  
Hooshang M. Beheshti ◽  
Bruce K. Blaylock ◽  
Dale A. Henderson ◽  
James G. Lollar
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Manufacturing Firms ◽  
Service Industries ◽  
Successful Implementation ◽  
Manufacturing Companies ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Depth Analysis

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.

Integration as unrealised ideal of ERP systems

2019 ◽  
Vol 16 (1) ◽  
pp. 2-34
Author(s):  
Henk-Jan van Roekel ◽  
Martijn van der Steen
Keyword(s):  
Enterprise Resource Planning ◽  
Design Methodology ◽  
Resource Planning ◽  
Erp Systems ◽  
Single Object ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
The Ideal

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.

Socio-Technical Change Perspective for ERP Implementation in Large Scale Organizations

2018 ◽  
pp. 2975-2987 ◽  
Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel
Keyword(s):  
Organizational Change ◽  
Enterprise Resource Planning ◽  
Large Scale ◽  
Resource Planning ◽  
Business Environment ◽  
Erp Systems ◽  
Erp Implementation ◽  
Firm Level ◽  
Erp System ◽  
Technical Theory

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.

An Investigation of Enterprise Resource Planning Implementation in a Small Firm

2013 ◽  
pp. 57-80
Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen
Keyword(s):  
Decision Making ◽  
Small Firm ◽  
Enterprise Resource Planning ◽  
Implementation Process ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Small Organizations ◽  
Selection Processes

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.

Enterprise resource planning, operations and management

2013 ◽  
Vol 33 (8) ◽  
pp. 1075-1104 ◽  
Author(s):  
Kim Sundtoft Hald ◽  
Jan Mouritsen
Keyword(s):  
Literature Review ◽  
Enterprise Resource Planning ◽  
Operations Management ◽  
Design Methodology ◽  
Resource Planning ◽  
Future Research ◽  
Erp Systems ◽  
Content Type ◽  
Practical Implications ◽  
Case Based

PurposeThis research aims to explore the enabling and constraining effects of enterprise resource planning (ERP) systems and speculate on how these can be linked to the four generic roles of operations management (OM) proposed by Slack et al.Design/methodology/approachThis research understands ERP as boundary objects characterised by modularity, abstraction, accommodation, and standardization. An in‐depth cross‐disciplinary literature review and role synthesis is conducted.FindingsFour enabling and three constraining effects of ERP are deduced from existing literature. ERP and OM are linked conceptually. Based on the identified effects of ERP, the paper speculates on the managerial tasks of the production and operations manager (POM) in an ERP environment and lists a set of central concerns of potential relevance to POM and to future research.Research limitations/implicationsThe identified roles of ERP and their implications could be empirically tested using case based and survey research.Practical implicationsThe results provide insights into how ERP has multiple and parallel roles, and how these roles are relevant to the function of OM. Such knowledge is valuable for practicing POMs in managing the implementation and design of ERP to support the different domains of OM.Originality/valueCurrent studies of the effects of ERP and their link to the practice of OM tend to focus on one or a few roles of the emerging system. Such studies do not properly take into account the modularised and pluralistic nature of ERP. This research provides a platform from where future research on the effects, managerial dilemmas and implications of ERP can be reconciled across research communities.

Criteria selection for evaluation of ERP systems implementation in large Brazilian companies

2015 ◽  
Vol 13 (2) ◽  
pp. 160-186 ◽  
Author(s):  
Reinaldo José De Freitas ◽  
Helder Gomes Costa ◽  
Valdecy Pereira ◽  
Eduardo Shimoda
Keyword(s):  
Systematic Review ◽  
Enterprise Resource Planning ◽  
Scientific Information ◽  
Resource Planning ◽  
Successful Implementation ◽  
Erp Systems ◽  
Content Type ◽  
Systems Implementation ◽  
Methodological Approaches ◽  
Practical Implications

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.

scholarly journals The relationship between enterprise resource planning (ERP) implementation and intellectual capital under the moderating effect of organizational learning capability

2021 ◽  
Author(s):  
◽  
Quang Nguyen
Keyword(s):  
Organizational Learning ◽  
Enterprise Resource Planning ◽  
Intellectual Capital ◽  
Resource Planning ◽  
Three Dimensions ◽  
Erp Systems ◽  
Erp Implementation ◽  
Learning Capability ◽  
Product Term ◽  
Positive Effect

<p>Although Enterprise Resource Planning (ERP) systems alone are not the source of competitive advantage, they may do this indirectly through enhancing or supplementing the organization’s other strategic resources. Studies on ERP have not explicitly examined the interactions of ERP systems with other organizational capabilities to determine how investment in ERP systems can be leveraged into the creation of strategic resources of organizations.  Further, ERP systems are large and complex, and the degree to which they are implemented throughout an organization can vary – this is described as the ERP scope. The scope of ERP implementation is believed to influence the degree of its effects on an organization. Relying on the literature on ERP effects, business value of information technology (IT) and the notion that organizations are learning systems which utilize their knowledge to create value and to accumulate further knowledge, this study examines the influence of the scope of ERP implementation on a strategic resource of organizations, namely intellectual capital, under the moderating effect of organizational learning capability.  This study develops a research model to show the influence of the three dimensions of ERP implementation scope (breadth, depth, and magnitude) on intellectual capital and simultaneously the influence of organizational learning capability on these base relationships. The hypothesized relationships among variables are evaluated by a data set of 226 responses collected from manufacturing firms in Vietnam. With the support of SmartPLS version 2.0, the structural equation model is evaluated using the techniques of multiple regression analysis, and the moderation effects are analyzed using group comparison and product term approaches.  The findings provide support for the hypotheses. The three dimensions of ERP implementation show a positive impact on intellectual capital. Organizational learning capability more or less moderates the relationship between ERP implementation scope and intellectual capital. As a result of the group comparison approach for moderation analysis, firms with a low level of learning capability are likely to have no effect of ERP implementation on intellectual capital. However, in the group with a high level of learning capability the breadth and magnitude of ERP implementation have a positive effect on intellectual capital. By using the product term approach, only the magnitude of ERP implementation shows an interaction effect with organizational learning capability on intellectual capital. The breadth and depth of ERP implementation appear to have minimal interaction with organizational learning capability.  The results inform the literature on the business value of IT by demonstrating that an ERP system can become a strategic asset as its implementation has a positive effect on intellectual capital especially with the presence of a firm’s learning capability. Additionally, the research reveals another ERP effect (e.g. the effect on the intellectual capital of organizations) that complements the understanding of ERP effects that have been identified in prior studies. The findings practically contribute to managerial knowledge by showing that ERP implementation should not be considered in isolation, but rather organizations should build a substantial level of learning capability to fully obtain the positive effect of ERP implementation on intellectual capital.</p>

scholarly journals The relationship between enterprise resource planning (ERP) implementation and intellectual capital under the moderating effect of organizational learning capability

2021 ◽  
Author(s):  
◽  
Quang Nguyen
Keyword(s):  
Organizational Learning ◽  
Enterprise Resource Planning ◽  
Intellectual Capital ◽  
Resource Planning ◽  
Three Dimensions ◽  
Erp Systems ◽  
Erp Implementation ◽  
Learning Capability ◽  
Product Term ◽  
Positive Effect

<p>Although Enterprise Resource Planning (ERP) systems alone are not the source of competitive advantage, they may do this indirectly through enhancing or supplementing the organization’s other strategic resources. Studies on ERP have not explicitly examined the interactions of ERP systems with other organizational capabilities to determine how investment in ERP systems can be leveraged into the creation of strategic resources of organizations.  Further, ERP systems are large and complex, and the degree to which they are implemented throughout an organization can vary – this is described as the ERP scope. The scope of ERP implementation is believed to influence the degree of its effects on an organization. Relying on the literature on ERP effects, business value of information technology (IT) and the notion that organizations are learning systems which utilize their knowledge to create value and to accumulate further knowledge, this study examines the influence of the scope of ERP implementation on a strategic resource of organizations, namely intellectual capital, under the moderating effect of organizational learning capability.  This study develops a research model to show the influence of the three dimensions of ERP implementation scope (breadth, depth, and magnitude) on intellectual capital and simultaneously the influence of organizational learning capability on these base relationships. The hypothesized relationships among variables are evaluated by a data set of 226 responses collected from manufacturing firms in Vietnam. With the support of SmartPLS version 2.0, the structural equation model is evaluated using the techniques of multiple regression analysis, and the moderation effects are analyzed using group comparison and product term approaches.  The findings provide support for the hypotheses. The three dimensions of ERP implementation show a positive impact on intellectual capital. Organizational learning capability more or less moderates the relationship between ERP implementation scope and intellectual capital. As a result of the group comparison approach for moderation analysis, firms with a low level of learning capability are likely to have no effect of ERP implementation on intellectual capital. However, in the group with a high level of learning capability the breadth and magnitude of ERP implementation have a positive effect on intellectual capital. By using the product term approach, only the magnitude of ERP implementation shows an interaction effect with organizational learning capability on intellectual capital. The breadth and depth of ERP implementation appear to have minimal interaction with organizational learning capability.  The results inform the literature on the business value of IT by demonstrating that an ERP system can become a strategic asset as its implementation has a positive effect on intellectual capital especially with the presence of a firm’s learning capability. Additionally, the research reveals another ERP effect (e.g. the effect on the intellectual capital of organizations) that complements the understanding of ERP effects that have been identified in prior studies. The findings practically contribute to managerial knowledge by showing that ERP implementation should not be considered in isolation, but rather organizations should build a substantial level of learning capability to fully obtain the positive effect of ERP implementation on intellectual capital.</p>

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