From On-Premise ERP to Cloud ERP

Author(s):  
Karim Mezghani

One of the concerns linked to ERP implementation is alignment. Indeed, ERP systems affect almost all business processes and even some strategic choices of a firm. That is why many studies focus on alignment concerns when studying ERP implementation. Nevertheless, firms are more and more interested in switching toward cloud ERP. This involves great challenges for business-IT alignment of an enterprise. Also, with cloud ERP, data and applications are provider-hosted. So, the way ERP is managed may be redefined and achieving alignment might be more challenging. Thus, this chapter aims to expose the major challenges and issues linked to ERP systems alignment. Some tendencies and best practices are also proposed for firms to overcome the alignment challenges, mainly in a cloud environment.

2021 ◽  
Vol 23 (4) ◽  
pp. 1-22
Author(s):  
Miguel Eduardo Torres-Moreno ◽  
Jairo Hernán Aponte-Melo

Over the last decades, the role of the IT department within an organization has gradually gained importance. Technology has permeated all areas within organizations and nowadays is the cornerstone of almost all business processes. Thus, business-IT alignment (BITA) is considered an essential success factor for almost any organization. Consequently, the evaluation and improvement of this alignment have been a growing concern among researchers and organizations. This study assessed the BITA maturity in a Colombian university, applying Luftman’s SAM (Strategic Alignment Maturity) model. The conducted assessment collected, analyzed, and contrasted perceptions of business and IT personnel. Similarly, we investigated the personnel’s perceptions at the strategic, functional, and operational levels regarding the SAM factors. Furthermore, we compared our results with other BITA assessments in educational institutions, Latin American organizations, and worldwide results. Finally, we drew some conclusions that can be useful for practitioners who seek to apply Luftman’s assessment.


Author(s):  
Aboobucker Ilmudeen

Information technology (IT) has become a vital function, and almost all organizations depend on IT. The IT dependency causes the executives to use IT governance practices for the IT investment decision-making process. Organizations spend more on IT investments even those that are over budget, come under pressure, behind schedule, and are generating fewer paybacks than anticipated. Hence, business organizations are continuously examined and believed to be answerable for their IT investment more than ever. This chapter focuses on various IT governance and business-IT alignment frameworks, models, and best practices to discuss in this context.


Author(s):  
Lorraine Staehr ◽  
Graeme Shanks ◽  
Peter B. Seddon

This study examines the postimplementation period of an ERP implementation in an Australian manufacturing organization, with the aim of understanding and explaining the business consequences that occurred. The description of the case is followed by an analysis using the structurational model of technology. The radical change in the way users needed to understand the business in terms of the new system, coupled with insufficient training and support postimplementation, and user resistance to change, impacted on the benefits the organization gained from the system.


Author(s):  
Heinz D. Knoell ◽  
Lukas W.H. Kühl ◽  
Roland W.A. Kühl ◽  
Robert Moreton

In this chapter we present the factors for the success of ERP implementation projects. In the first section, we present the outcome of three surveys on the process and success factors for ERP projects. The first survey was undertaken in 2003 in Germany, the second in 2004 in the United States, and the third in 2006 in Turkey. The results are discussed in light of Hofstede’s model of cultural factors. In the second section we evaluate common ERP lifecycle models. In spite of the great variety of potential advantages, it is also necessary to illuminate the real effects of standard ERP software in practice. Recent studies have revealed that 81% of German companies interviewed using SAP do not fully exploit the software’s ability to optimize business processes, though 61% stated that SAP offers very good process optimization opportunities (Ploenzke, 2000). Therefore we evaluated popular lifecycle models with respect to their suitability to implement standard software in a process-driven way (Kuehl & Knoell, 2002). In the third section we present a semi-process-oriented approach lifecycle model for the implementation and release changeover of ERP systems. This lifecycle model was developed from the authors’ experience in practice, and its practical relevance was evaluated in real-world projects. This approach is also assessed in light of the criteria presented in the second section.


Author(s):  
Joseph Bradley

ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow this practice, a significant number of firms employ an alternate strategy of “best of breed” ERP. This strategy involves selecting software that best matches the current or desired business practices of the company from a variety of vendors. This strategy reduces the need for the firm to customize the software or to significantly reengineer its business practices. Best of Breed offers firms the opportunity to maintain or create competitive advantage based on unique business processes. “Vanilla” ERP implementations may result in competitors all adopting the same business processes leaving no firm with an advantage.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lanlan Cao

PurposeThis paper seeks to answer three questions about how retailers can benefit from AI. (1) What are the main strategies for retailers to improve their AI-related data management? (2) How do retailers use AI to provide solutions in business processes? (3) What are the value creation logics of AI applications in retail?Design/methodology/approachData- and solution-centric perspectives, as well as the concept of value creation logics, serve to build the analytical framework. The grounded theory multiple-case analysis of 54 representative retailers' adoptions and implementations of AI between 2008 and 2018 help to investigate the firm's AI applications and value creation logics.FindingsThis study identifies five main strategies for AI-related data management and reveals 28 AI-powered solutions, changing 14 business processes, with five management areas involved in AI applications to create value via four logics: automation, hyper-personalization, complementarity and innovation.Research limitations/implicationsThis paper advances the research into AI applications in business and management by providing research propositions with an integrative framework to understand how firms can use and benefit from AI. However, secondary data and exploratory study still limit the findings.Practical implicationsThe findings provide retail managers with an analytical framework that can help them to develop a rationale for their strategic choices and best practices relating to the adoption and implementation of AI.Originality/valueThe originality of this paper lies in its systematic examination of AI applications and value creations in retail. The findings provide managers with guidance, rational strategic choices and best practices to take action to embrace the great business opportunities created by AI technologies.


2010 ◽  
pp. 292-302
Author(s):  
Joseph Bradley

ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow this practice, a significant number of firms employ an alternate strategy of “best of breed” ERP. This strategy involves selecting software that best matches the current or desired business practices of the company from a variety of vendors. This strategy reduces the need for the firm to customize the software or to significantly reengineer its business practices. Best of Breed offers firms the opportunity to maintain or create competitive advantage based on unique business processes. “Vanilla” ERP implementations may result in competitors all adopting the same business processes leaving no firm with an advantage.


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.


Intelmatics ◽  
2021 ◽  
Vol 1 (1) ◽  
Author(s):  
Denny Arie Suryo ◽  
Syaifudin Abdullah ◽  
Teddy Siswanto

<p class="Abstract"><strong>Mc Cake is one of the business people in the food industry. Which was founded in Bekasi, West Java. Mc Cake has constraints and problems including the lack of a system that streamlines the time and division of job desk at the company. It also shows that the sales order business process has not been integrated with the sales system at Mc Cake. The process that is currently running from the sale transaction is still done manually.</strong></p><strong>                In this problem, the solution considered to be able to handle the problem is by applying the concept of ERP (Enterprise Resource Planning) using the Odoo application with a point of sales module, because the advantages that can be obtained are speed, accuracy, and relatively lower costs compared to other methods. . Odoo is a modular application which means it consists of separate modules but can be integrated with each other. The modules in Odoo include sales, purchase, accounting, point of sale, CRM and marketing. In addition, the business processes carried out on each Odoo module are best practices for the open source class and in general Odoo covers the business processes of MSME trading companies such as Mc Cake.</strong>


Author(s):  
Jose M. Framinan ◽  
Jose M. Molina

Enterprise resource planning systems can be defined as customizable, standard application software which includes integrated business solutions for the core processes and administrative functions (Chan & Rosemann, 2001). From an operative perspective, ERP systems provide a common technological platform unique for the entire corporation allowing the replacement of mainframes and legacy systems. This common platform serves to process automation as well as to simplify current process either by an explicit reengineering process or by the implicit adoption of the system “best practices” (Markus & Tanis, 2000). Finally, the common centralized platform allows the access to data that previously were physically or logically dispersed. The automation of the processes and the access to data allows the reduction of operating times (thus reducing operating costs) while the latter serves to a better support of business decisions (see e.g., Umble, Haft & Umble, 2003 for a detailed review of ERP benefits). ERP is considered to provide businesses with new opportunities to acquire knowledge (Srivardhana & Pawlowski, 2007), being the sources of knowledge the aforementioned best practices from the ERP, and the ERP software company’s staff during the implementation phase. At present, ERP systems are either used or implemented in a large number of enterprises. According to Genoulaz and Millet (2006), up to 74% of manufacturing companies and up to 59% of service companies use an ERP system. In addition, more than 70% of Fortune 1000 companies have implemented core ERP applications (Bingi, Sharma, Godla, 1999; Yen, Chou & Chang, 2002). The objectives for implementing an ERP system can be classified as operational, strategic, dual (operational plus strategic), or without objective (Law & Ngai, 2007). The adoption of an ERP system with operational objectives is aimed at improvement operating efficiency together with the reduction of costs, while companies implementing ERP with a strategic objective would experience a change in business processes, improving sales and market expansion. A widespread critique to ERP systems is their high total cost of ownership (Al-Mashari, Al-Mudimigh & Zairi, 2003) and hidden costs in implementation (Kwon & Lee, 2001). Besides, ERP systems impose their own logic on an organization’s strategy and culture (Davenport, 1998), so ERP adopters must adapt their business processes and organization to these models and rules. Consequently, organizations may face difficulties through this adaptation process which is usually carried out without widespread employee involvement. This may cause sore employees, sterile results due to the lack of critical information usually provided by the employees; and also late delivery, with reduced functionality, and/or with higher costs that expected (Kraemmeraard, Moeller & Boer, 2003). Additionally, some analysts have speculated that widespread adoption of the same ERP package in the same industry might lead to loss of competitive advantage due to the elimination of process innovation-based competitive advantage (Davenport, 1998). This has been observed, for instance, in the semiconductor manufacturers sector (Markus & Tanis, 2000). The early stage of ERP was carried out through Materials Requirement Planning (MRP) systems (Umble, Haft & Umble, 2003). The next generation of these systems, MRP II (Manufacturing Resources Planning), crossed the boundaries of the production functionality and started supporting not only manufacturing, but also finance and marketing decisions (Ptak & Schragenheim, 2000). Current ERP systems appeared in the beginning of the 1990’s as evolved MRP II, incorporating aspects from CIM (Computer Integrated Manufacturing) as well as from EDP (Electronic Data Processing). Therefore, ERP systems become enterprise-wide, multilevel decision support systems. ERP systems continue evolving, incorporating Manufacturing Execution Systems (MES), Supply Chain Management (SCM), Product Data Management (PDM), or Geographic Information Systems (GIS), among others (Kwon & Lee, 2001).


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