Learning from Adopters’ Experiences with ERP: Problems Encountered and Success Achieved

2000 ◽  
Vol 15 (4) ◽  
pp. 245-265 ◽  
Author(s):  
M. Lynne Markus ◽  
Sheryl Axline ◽  
David Petrie ◽  
Cornelis Tanis
Keyword(s):  
Organizational Performance ◽  
Enterprise Resource Planning ◽  
Early Identification ◽  
Basic Research ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Early Success ◽  
Research Questions ◽  
System Life

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.

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
Keyword(s):  
Organizational Performance ◽  
Enterprise Resource Planning ◽  
Organizational Context ◽  
Business Processes ◽  
Evaluation Method ◽  
Resource Planning ◽  
Point Of View ◽  
Erp Systems ◽  
Erp System

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.

scholarly journals Measuring enterprise resource planning (ERP) systems success from a managerial accounting perspective

2021 ◽  
Vol 19 (1, special issue) ◽  
pp. 218-228
Author(s):  
Patrick Ulrich ◽  
Hasan Andac Güler
Keyword(s):  
Organizational Performance ◽  
Enterprise Resource Planning ◽  
Management Accounting ◽  
Resource Planning ◽  
Research Field ◽  
Managerial Accounting ◽  
Erp Systems ◽  
Major Objective ◽  
Erp System ◽  
Degree Of Satisfaction

A major objective of management accounting is to support managers in decision-making by providing decision-relevant interdepartmental information. Hence, enterprise resource planning (ERP) systems are important for the application of management accounting techniques as they streamline the necessary information. Besides the fact that ERP systems are important, there was little research conducted which is directly concerned with concrete benefits that arise with the use of ERP systems within management accounting. This study with 94 participants contributes to this research field by examining benefits that arise with the use of ERP systems within management accounting and the characteristics that are crucial for achieving those benefits. As there was a recent wave of new ERP systems (i.e., SAP S/4HANA®), the results were clustered into organizations that are using traditional and modern ERP system where appropriate (i.e., response time). The outcomes indicate that using ERP systems within management accounting offers benefits that are positively interrelated with the extent and the satisfaction of using this information to make decisions. As a higher extent of using this information and a higher degree of satisfaction with this information is positively interrelated with organizational performance, we show that using ERP systems within management accounting helps improve organizational performance

Smoothing Short Duration Capacity Problems in Enterprise Resource Planning (ERP) Systems: An Algorithmic Approach

2014 ◽  
Vol 933 ◽  
pp. 860-868
Author(s):  
Muneam Zamzeer Al-Magsoosi
Keyword(s):  
Short Duration ◽  
Enterprise Resource Planning ◽  
Lot Sizing ◽  
Environmental Parameters ◽  
Resource Planning ◽  
Successful Implementation ◽  
Erp Systems ◽  
Lot Size ◽  
Erp System ◽  
Order Release

Successful implementation of ERP systems should take full advantage of the access to information, but not be constrained by many of the deficiencies associated with infinite capacity scheduling methodologies. In this paper an algorithm is developed which improves the performance of the ERP system. Lot sizing decisions based on capacity availability are used as an instrument to integrate more effectively capacity requirements planning (CRP) and Material Requirements Planning (MRP). MRP is a planning tool for a sub-set of manufacturing system specially in hierarchal multi-product, multi-period and multi-stage production planning and inventory control system. The Vehicle used for this integration is planned order release (POR) quantity. The algorithm requires minimal deviation from the MRP logic. In this sequential process MRP first issues the action notices and then the algorithm analyses the capacity situation in the work centers. The algorithm scans all planned order release quantities of lower level items in the action bucket before orders are released to the shop. For each item a delta value is computed identifying the degree orders are contributing to capacity problems. This delta is specific to each POR. The POR causing the highest overload and the one passing through the lowest utilized work centers are selected for a lot size decrease, respectively, an increase. After identifying the candidates, a series of checks analyses the suitability of the candidates for that change. The planned order release quantities of more items can be performed. Projected capacity profile after iteration will be updated and capacity requirements over a short duration are smoothed. The experiments are performed with MAP/3000 as a simulation model for this study. The developed algorithm is added to MAP/3000 as additional subroutines. The design of the experiments consists of a base test identifying the significance of different environmental parameters of MRP systems and a main test which performs a detailed evaluation. The results are evaluated using analysis of variance techniques. Most ERP systems built on the historical development of MRP and CRP systems, and the assumption of infinite capacity is affecting the performance of those systems badly. This paper is presenting an algorithm to smooth capacity problems by using the existed capacity.

Quantified benefit of implementing enterprise resource planning through process simulation

2004 ◽  
Vol 31 (2) ◽  
pp. 263-271 ◽  
Author(s):  
Sangyoub Lee ◽  
Ahsan Ullah Arif ◽  
Hyounseung Jang
Keyword(s):  
Enterprise Resource Planning ◽  
Management System ◽  
Construction Materials ◽  
Resource Planning ◽  
Application Integration ◽  
Erp Systems ◽  
Materials Management ◽  
Erp System ◽  
Internal Integration ◽  
Management Functions

The enterprise resource planning (ERP) system can integrate the major business management functions of the enterprise with a single common database to allow sharing of all information and achieve efficient communications between management functions. Based on the needs of running a construction enterprise, ERP shows potential applicability to the construction industry. This paper sought to quantify the benefits of ERP systems when applied to construction materials procurement. Specifically, this paper briefly described the business processes involved in construction materials procurement and illustrated how ERP systems could be implemented and the efficiency of the construction materials management system consequently enhanced. The transformation from a non-ERP system into an ERP system through application integration, internal integration, external integration, and automation were simulated. Results show that the individual task improvements of models can increase the productivity of the materials management cycle by up to 5.2%, 18.2%, 27.8%, 13.5%, and 79.2% through internal integration, external integration, application integration, automation, and ERP system, respectively, by automating most of the repeated transactions and reducing manpower required to perform the tasks.Key words: enterprise resource planning, materials management system, productivity, simulation.

Enterprise Resource Planning (ERP) Systems: An Empirical Analysis of Benefits

2004 ◽  
Vol 1 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Daniel E. O'Leary
Keyword(s):  
Empirical Analysis ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Business Case ◽  
Data Repository ◽  
Erp Systems ◽  
Erp System ◽  
Intangible Benefits

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.

Critical Success Factors in Enterprise Resource Planning Implementation

2020 ◽  
pp. 188-208
Author(s):  
Muhammad Shaikh ◽  
Libi Shen
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Resource Planning ◽  
Future Research ◽  
Critical Factors ◽  
It Professionals ◽  
Erp Systems ◽  
Erp System ◽  
Effective Implementation ◽  
Critical Success

Enterprise resource planning (ERP) systems are considered, by many, to be extremely solid, while giving organizations the ability to quickly capture and manage data across diverse sectors. Because the successful employment of an ERP system depends upon skillful implementation, specific factors contributing to successful ERP implementation are essential. What are the critical factors in the implementation of ERP system? How do company administrators and IT professionals perceive the critical successful factors for the effective implementation of the ERP? How are critical successful factors defined? How do IT professionals perceive the influence of critical factors on the effective implementation of ERP in a Phoenix company? In this chapter, the critical successful factors in the implementation of ERP systems will be explored. A single case study was conducted, and the interview data were gathered from 15 IT professionals in a Phoenix, Arizona company. Problems, solutions, recommendations, and future research direction will be presented.

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 Analytical Model to Measure IS-Enabled Organizational Effectiveness

2013 ◽  
pp. 230-245
Author(s):  
Chun Meng Tang ◽  
Govindan Marthandan
Keyword(s):  
Organizational Effectiveness ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Business Managers ◽  
Erp Systems ◽  
Erp System ◽  
Abstraction Level ◽  
Confirmatory Factor ◽  
Order Construct ◽  
Returns On Investment

When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: “What are the returns on investment?” When the ERP system is implemented and in operation, business managers ask another question: “How successful is the system?” To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effectiveness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as a third-order construct manifested by three second-order constructs and ten first-order constructs.

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.

Evaluating the Usability Maturity of Enterprise Resource Planning Systems

2020 ◽  
pp. 171-199
Author(s):  
Kelvin Kabeti Omieno
Keyword(s):  
Software Quality ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
User Performance ◽  
Erp Systems ◽  
Quality Model ◽  
Quality Models ◽  
Erp System ◽  
Enterprise Resource Planning Systems ◽  
Software Quality Models

The enterprise resource planning (ERP) system is a complex and comprehensive software that integrates various enterprise functions and resources. Although ERP systems have been depicted as a solution in many organizations, there are many negative reports on ERP success, benefits, and effect on user performance. Previous research noted that there is a lack of knowledge and awareness of ERP systems and their overall value to ERP organizations. ERP systems have been widely studied during the past decade; yet they often fail to deliver the intended benefits originally expected. One notable reason for their failures is the lack of understanding in user requirements. There are many studies conducted to propose software quality models with their quality characteristics. However, there is currently no dedicated software quality model that can describe usability maturity and involve new features of ERP systems. This chapter proposes a framework for evaluating the usability maturity as a quality attribute of ERP systems.

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