scholarly journals The impact of enterprise systems in management decision making

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.

Kybernetes ◽  
2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ahmed Ouiddad ◽  
Chafik Okar ◽  
Razane Chroqui ◽  
Imane Beqqali Hassani

Purpose An enterprise resource planning (ERP) system is commonly used for automating operational processes and enhancing their efficiency inside a company. In the recent years, the increasing development of ERP technologies has increased their impacts on decision-making. Such impact can no longer be underestimated. The purpose of this study was to evaluate the impacts of ERP systems on the improvement of decision-making quality inside large Moroccan companies. Design/methodology/approach Based on the DeLone and McLean information systems success model and by adopting a quantitative approach, survey data were collected through questionnaires. The established questionnaires were distributed to 104 decision-makers who use ERP systems. To test the developed research model, structural equation modeling based on the partial least squares method was used. Findings The findings of the present investigation showed that information and system quality had a positive impact on the overall user’s experience with the ERP system, whereas service quality had a negative impact on it. This influenced the quality of decision-making. The results also showed that the model used has sufficient and adequate convergent and discriminant validities, as well as sufficient reliability. Originality/value To the best of authors’ knowledge, this is the first empirical study that evaluates the effect of ERP systems on improving the quality of decision-making in Morocco. The results provide interesting theoretical and managerial implications.


Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen

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.


2021 ◽  
Vol 16 (2) ◽  
pp. 122-134
Author(s):  
Pavol Zahoran ◽  
Ondrej Zizlavsky

Automation, robotics, Internet of Things and Big Data are currently a big challenge for businesses. However, they can also be a great opportunity. One of the corporate areas where new technologies can be used is controlling. In this research, the issue is narrowed down to the impact of new technologies on Enterprise Resource Planning (ERP) systems of companies, which are a basic tool of controlling in companies. The research analyses the possibilities of integrating elements of Industry 4.0 with ERP systems and the possibility of using data for corporate controlling. For this purpose, a literature review was carried out and gained results were further analysed according to the defined criteria. The outcome of the literature review is an essential current state analysis of the impact of new technologies on corporate ERP systems with regard to the company's controlling processes. This paper serves as a very first step in designing a systematic research study in area of controlling 4.0. Keywords: automation, controlling, Enterprise Resource Planning (ERP), Industry 4.0, management control, management accounting


2021 ◽  
Vol 17 (4) ◽  
pp. 69-84
Author(s):  
Godwin Banafo Akrong ◽  
Yunfei Shao ◽  
Ebenezer Owusu

Globally, governments are taking steps to help them increase their income generation margin by implementing tax administrative ERP systems. However, the impacts on the internal system users of these ERP system quality features have not drawn the attention needed. This study, therefore, examines the relationship between the information systems' (IS) quality and individual impact using the theoretical foundation of the DeLone and McLean IS success model and, secondly, addresses the interrelationships between the quality constructs of information systems (IS). The authors also used the structural equation modeling technique of partial least squares to evaluate and analyze the data. The results show that system quality, the information quality, and the service quality characteristics of the tax administrative ERP system have a strong positive impact on the success of the IS at the individual level. There is also a positive relationship between the information systems' (IS) quality construction. The results provide additional empirical observations and consequences for management.


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.


2017 ◽  
Vol 11 (3) ◽  
pp. 306-342 ◽  
Author(s):  
Mona Althonayan ◽  
Abraham Althonayan

Purpose Enterprise resource planning (ERP) systems are complex and comprehensive software designed to integrate business processes and functions. Despite the difficulties and risk, the adoption of ERP systems is expanding rapidly. Universities make large investments in information systems and expect positive impacts. However, universities are facing serious challenges in implementing new technology. Therefore, this research aims to evaluate the impact of ERP systems on higher education (HE) from the perspective of stakeholders’ performance. Design/methodology/approach This research paper conducted a case study of an ERP system in a Saudi university to explore the impact of ERP system on the performance of the system’s stakeholders among the university’s employees. Findings The system quality factors (flexibility, compatibility, availability of right data, availability of currency, ease of use and timeliness) were found to affect performance positively, as were service quality factors (tangibility, reliability, responsiveness and assurance). This research further found that factors from pre-implementation, implementation and post-implementation phases had a direct effect on stakeholders’ performance. Research limitations/implications Future research would be useful during the maturity phase to include all stakeholders in several Saudi universities. In addition, more research can be beneficial to test the applicability of the impact of the ERP system on stakeholders’ performance in other public sector organisations and in the private sector. Practical implications The results suggest that organisations in general and HE institutions in particular should focus on the early stages and the implementation phase if they wish to achieve high standards of stakeholder performance. Originality/value This research makes a novel contribution by attempting to evaluate the impact of service quality on stakeholder performance in the ERP environment. The contribution uses service quality as a dimension consisting of four factors – reliability, assurance, tangibility and responsiveness. All four factors were found to be significant on ERP stakeholders’ performance.


Author(s):  
Lars Frank

ERP (Enterprise Resource Planning) systems consist normally of ERP modules managing sale, production and procurement in private businesses. ERP systems may also have modules for special lines of business or modules for the different sectors of E-Government. However, the ERP systems of today use a common database and therefore, it is normally only possible to use modules supported by the ERP supplier. This limits the possibilities for special lines of business like the different sectors of E-Government. It is normally not possible to use the traditional ACID (Atomicity, Consistency, Isolation and Durability) properties across heterogeneous ERP modules and therefore, it is not possible to integrate such modules without inconsistency and anomaly problems. That is, the users cannot trust the data they are reading and even worse they can undermine the validity of the databases if they update the databases by using such invalid information. However, it is possible to use so called relaxed ACID properties. That is, it should, from a user point of view, look as if the traditional ACID properties were implemented, and therefore, the users can trust the data they are reading and cannot do anything wrong by using this data.


Author(s):  
Fergal Carton ◽  
Frederic Adam

The provision of timely, accurate, relevant, and concise information for managerial decision making has traditionally represented a challenge to information systems designers. The mass adoption of enterprise resource planning (ERP) systems has multiplied the amount of data being recorded about the movement of inventory in the supply chain. However, this online information requires much off-line manipulation in order for it to be meaningful to managers. In addition, these data are based on physical structures and business models that evolve over time, and thus inevitably a gap opens between the virtual enterprise and reality. Despite the benefits of inventory visibility and expenditure control afforded by ERP systems, managers still require data from other, nonintegrated systems. In this chapter the authors present their research on decision-making support in two manufacturing organisations, with the objective of understanding how these integrated applications support the manager in achieving his or her goals.


2018 ◽  
Vol 14 (2) ◽  
pp. 120-137 ◽  
Author(s):  
Gary Spraakman ◽  
Winnie O’Grady ◽  
Davood Askarany ◽  
Chris Akroyd

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.


2020 ◽  
Vol 2 (4) ◽  
pp. 101-122
Author(s):  
Hasan Alhanatleh ◽  
Murat Akkaya

Enterprise resource planning (ERP) systems have been used by organizations for a years, whereas, Cloud ERP systems gained audience few years ago both from practitioners and academicians. As such there is a migration from the traditional ERP to Cloud ERP system, and employees in most organizations are accustomed to the traditional ERP system. In order to improve the efficiency and effectiveness of Cloud ERP system use in the operation stage. Organizations need to research the factors that have impact on users’ satisfaction and managerial decision making. There is a great deal of prior studies that measured users' adoption of ERP systems using a technological acceptance model (TAM). Thus, this study also utilized TAM model in examining the factors that influence users’ adoption of Cloud ERP systems. To get maximum value of the validity and reliability of the findings, the study was conducted in two folds which are pre- implementation and post-implementation. In addition to, a structural equation modeling was employed to reach the findings. Finally, the study identified technology factor, employee factor, perceived usefulness and perceived ease of use as important variables for affecting Cloud ERP adoption; and as important antecedents influencing managerial decision making. This study comes to be the first study to employ TAM model in Cloud ERP area in two waves: pre-post implementation phases. Interestingly, the relationships between the variables in pre and post-implementation do not differ significantly. JEL Code: M15.


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