An Investigation of Enterprise Resource Planning Implementation in a Small Firm

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.

2011 ◽  
Vol 7 (1) ◽  
pp. 18-40 ◽  
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.


Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

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.


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.


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.


2001 ◽  
Vol 15 (1) ◽  
pp. 3-18 ◽  
Author(s):  
David C. Hayes ◽  
James E. Hunton ◽  
Jacqueline L. Reck

The objective of this research is to examine how the capital market responds when a firm announces that it plans to implement an enterprise resource planning (ERP) system. This is the first study to investigate the extent to which ERP systems are deemed to add market value to business organizations. Study findings indicate an overall positive reaction to initial ERP announcements. Further analyses suggest that the reaction is most positive for small/healthy firms. Finally, the market response to larger ERP vendors, as reflected by PeopleSoft and SAP, is significantly more positive than to smaller ERP vendors.


Author(s):  
Adekunle Okunoye ◽  
Mark Frolick ◽  
Elaine Crable

Enterprise Resource Planning (ERP) systems long have been known as systems that bring integration to numerous business activities within complex organizations. However, in today’s contemporary organizations, ERP systems are becoming a standard information system, irrespective of size and nature of the business. This case focuses on the implementation of an ERP system in higher education. The case covers the key stages of implementation. Particular emphasis is placed on the selection of the ERP system and the organizational dynamics involved. The implementation of the first two modules and the views of users are discussed. The depth of the case can enable managers to understand the complexity of an ERP system selection and the organizational issues involved. The analysis of the case sheds light on the activities involved in ERP projects and what to expect during the implementation stage.


Information ◽  
2021 ◽  
Vol 12 (11) ◽  
pp. 478
Author(s):  
Ann Svensson ◽  
Alexander Thoss

Implementation of enterprise resource planning (ERP) systems often aims to improve the companies’ processes in order to gain competitive advantage on the market. Especially, small companies need to integrate systems with suppliers and customers; hence, ERP systems often become a requirement. ERP system implementation processes in small enterprises contain several risk factors. Research has concluded that ERP implementation projects fail to a relatively high degree. Small companies are found to be constrained by limited resources, limited IS (information systems) knowledge and lack of IT expertise in ERP implementation. There are relatively few empirical research studies on implementing ERP systems in small enterprises and there is a large gap in research that could guide managers of small companies. This paper is based on a case study of three small enterprises that are planning to implement ERP systems that support their business processes. The aim of the paper is to identify the risk factors that can arise when implementing ERP systems in small enterprises. The analysis shows that an ERP system is a good solution to avoid using many different, separate systems in parallel. However, the study shows that it is challenging to integrate all systems used by suppliers and customers. An ERP system can include all information in one system and all information can also easily be accessed within that system. However, the implementation could be a demanding process as it requires engagement from all involved people, especially the managers of the companies.


2021 ◽  
Vol 1 (2) ◽  
pp. 42-61
Author(s):  
Andrei Ferdinan Bayu CK ◽  
Johan Setiawan

          ERP or Enterprise Resource Planning is a design that has been applied in an educational institution or company that can be used to organize, coordinate and manage the system resources in it to be more integrated. The refusal of system users to use the ERP system (new system) is one of the failure factors for ERP system implementation that should be considered by higher education companies. User's lack of understanding by users can cause users to simply be forced to use without being adapted to a qualified use of the ERP system. In addition to the importance of the ERP implementation process in a company or university, there is also an influence on the system's user experience as the key to the success of ERP implementation to minimize failures in the ERP system process.          This study uses the User Experience Questionnaire Framework to analyze, measure and find out significantly how much influence the user experience level has on the PeopleSoft Oracle Campus Solution ERP system using the six aspects contained in the framework UEQ on the modules Student Record, Academic Advisement, and Student Financial in the respective departments at UMN. The research was conducted quantitatively, namely the collection and collection of data to be carried out through the distribution of questionnaires online and carried out using SPSS software.   The results of the measurement level obtained based on the mean and benchmark data user experience from the six UEQ scales from the highest to the lowest value level are  Dependability is in the category (Excellent), Stimulation is in the category (Excellent), Novelty is in the category (Excellent), Perspicuity category is in the category (Good), Attractiveness is in the category (Good), and Efficiency is in the category (Good) and partially or completely can have a significant 61% influence on the use of modules in the ERP system at UMN.    Keywords: ERP (Enterprise Resource Planning), UEQ (User Experience Questionnaire), Quantitative, SPSS.


2011 ◽  
pp. 1295-1317
Author(s):  
Esther Brainin

The chapter considers the complexities of cultural differences for global enterprise resource planning (ERP) implementation. An extensive review of the literature related to societal and organizational culture is followed by a delineation of the stages of ERP implementation and the actors involved in each stage, reflecting the basic assumption that global ERP systems are not universally acceptable or effective, and that testing the cross-cultural generalizability of ERP systems in organizations will produce a managerial agenda that facilitates the implementation process. The recognition and discussion of these differences can provide a stimulus for identifying and modifying the limitations of technological implementation and use policies to improve the benefits generated by the technology. Topics of explicit concern to ERP implementation in global organizational economies related to organizational and societal culture are discussed, and suggestions for managerial mechanisms for overcoming major obstacles in this process are proposed.


Author(s):  
Stella Nafula Khaemba

Enterprise resource planning (ERP) systems are increasingly being adopted by many organizations. The cost, time, and effort of the organization need to be reflected in the uptake and use of the system by employees of the organizations in question. ERP system implementation readiness is positively associated with the ERP implementation success. It is therefore important to measure the success of such software in adopting firms which largely influenced by the readiness of the firm for ERPs. Many studies focus on other aspects of readiness leaving out the major players who are employees. This chapter discusses an effort towards extending CREM evaluation model for employee readiness with the aim of highlighting the role of their readiness in the overall success of ERP implementation. Research findings of this study help decision makers of organizations to attain a comprehensive picture about required actions to be accomplished for achieving readiness for implementing an ERP system.


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