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

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 USING ERP SYSTEM TO TEACH ACCOUNTING COURSES

2021 ◽  
pp. 1-5
Keyword(s):  
Enterprise Resource Planning ◽  
Resource Planning ◽  
Transaction Processing ◽  
Teaching Tool ◽  
Learning Approach ◽  
Managerial Accounting ◽  
Erp Systems ◽  
Erp System ◽  
Hands On ◽  
Accounting Courses

This paper discusses the use of Enterprise Resource Planning (ERP) systems as a teaching tool in Accounting Courses. Students can understand better the accounting cycle and business transaction processing by doing exercises and projects using the ERP system because it clearly shows the complete transaction cycle from the beginning to the end in a systematic and integrated way. Specifically, practical suggestions and usages in the class setting are illustrated based on the SAP system. This hands-on and active learning approach greatly enhances the learning of Accounting Courses such as financial and managerial accounting courses, finance courses, and information systems courses.

ERP systems and management accounting

2018 ◽  
Vol 14 (2) ◽  
pp. 120-137 ◽  
Author(s):  
Gary Spraakman ◽  
Winnie O’Grady ◽  
Davood Askarany ◽  
Chris Akroyd
Keyword(s):  
Enterprise Resource Planning ◽  
Management Accounting ◽  
Resource Planning ◽  
Small Samples ◽  
Research Projects ◽  
Erp Systems ◽  
Content Type ◽  
Erp System ◽  
New Information ◽  
The Impact

Purpose This paper aims to show how our understanding of the effects of enterprise resource planning (ERP) systems on management accounting are influenced through “nudging” by researchers in their preamble before interviews begin. Design/methodology/approach There were two groups of comparable respondents. Each group received a different preamble to the same questions. The differences in group responses were analyzed. Findings When the impact of ERP implementation on the physical, transactional and information flows within the firm were nudged, the responses focused on how the chart of accounts had to be expanded to account for the additional data introduced by transaction processing. When the IT and ERP system knowledge and skills were nudged, the responses tended to emphasize analyses or the use of new information through the use of drill down functionality. This research provides new insights and contributions to understanding how nudging affects or directs respondent assessments of the impact of ERP systems on management accounting. Research limitations/implications The research is limited by the relatively small samples and by the fact that these were different research projects. Practical implications Nudging has an obvious impact on research that should not be ignored. Social implications Unintentional nudging should be considered with all research projects. Originality/value This paper makes explicit that nudging occurs in research whether intentional or unintentional.

scholarly journals THE BENEFITS OF ENTERPRISE RESOURCE PLANNING SYSTEM IMPLEMENTATION OF MANAGEMENT ACCOUNTING PRACTICES IN MALAYSIAN SMES

2021 ◽  
Vol 56 (4) ◽  
pp. 764-778
Author(s):  
Sudhashini Nair ◽  
Foo Wai Xin ◽  
Salwa Ahamad ◽  
Neeta Jayabalan
Keyword(s):  
Organizational Performance ◽  
Enterprise Resource Planning ◽  
Structural Equation ◽  
Management Accounting ◽  
Resource Planning ◽  
Planning System ◽  
Equation Modeling ◽  
Smart Manufacturing ◽  
System Implementation ◽  
Erp System

Malaysia is a primary destination for smart manufacturing and high technology activities. However, as businesses grow and compete, there is high pressure on small and medium-sized enterprises (SMEs) to improve their organizational performance, diversify and expand their business, and support stakeholders' interests. Management accounting practices (MAPs) are likely to allow businesses to achieve such objectives as the use of financial and non-financial information at the management and operational level will assist in planning, control, and decision-making subsequently. This increases profit and sales while reducing operational cost, improving quality, and strengthening stakeholders’ relationships, including enhancing customer value. Enterprise resource planning (ERP) is a system that allows businesses to achieve these enhancements as the ERP software integrates various automated processes related to technology, inventory, finance, services, and human resource management. The review of studies in the field of MAPs has found that the operational, tactical, and strategic benefit from the ERP system implementation may affect MAPs in SMEs; hence, this study aims to examine the possible relationships that may exist between operational, tactical, and strategic benefits of ERP implementation and MAPs among Malaysian SMEs. Data was collected using online questionnaires from 150 managers from SMEs in the state of Selangor. Using Structural Equation Modeling (AMOS), the study found that both operational benefit and strategic benefit of ERP system implementation had significant positive relationships with MAPs in Malaysian SMEs. The implications of the research findings of this study are discussed.

The effects of ERP systems implementation on management accounting in Iranian organizations

2014 ◽  
Vol 7 (4) ◽  
pp. 245-256 ◽  
Author(s):  
Solmaz Abbasi ◽  
Mahmoud Zamani ◽  
Changiz Valmohammadi
Keyword(s):  
Enterprise Resource Planning ◽  
Data Transfer ◽  
Management Accounting ◽  
Resource Planning ◽  
Erp Systems ◽  
Time Data ◽  
Statistical Population ◽  
Content Type ◽  
Erp System

Purpose – The aim of this paper is to study the effects of enterprise resource planning (ERP) on management accounting in Iranian organizations. Preparing and offering different reports and budgets remain important activities for accountants, and directly implementing ERP systems improves the quality of these reports through real-time data transfer. Design/methodology/approach – The research methods used in this paper are descriptive surveys with questionnaires and interviews as the main data collection tools. Statistical population comprises every organization which has implemented an ERP system with financial/accounting modules. The participating 12 organizations were selected based on consultation with experts, and a seven-item Likert questionnaire was prepared and its validity approved and used to collect data. The t-test and Friedman test were applied to assess the hypotheses and rank parameters. Findings – Results revealed that the highest effects of implementing an ERP in surveyed Iranian organizations are improving standard levels and the quality of reports, creating more organizational integration and empowering personnel. Research limitations/implications – As the implementation of ERP in Iran is still in its initial phases and the sample is restricted to only four organizations, when considering the generalizability of the obtained results, caution should be taken. Originality/value – This research is among the few studies on the effects of ERP implementation on accounting management departments, particularly in the context of Iran.

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.

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