Balancing Risks and Rewards of ERP

Author(s):  
Joseph Bradley

Enterprise Resource Planning (ERP) systems claim to meet the information needs of organizations. These off-the-shelf software packages replace hard to maintain solutions created by IS departments or older off-the-shelf packages that often provided only piecemeal solutions to an organization’s information needs. ERP systems evolved from material requirements planning systems (MRP) and manufacturing resources planning systems (MRP II). ERP serves the entire enterprise, not just manufacturing and inventory control as with its predecessors. ERP integrates information for the entire organization in a single database. But ERP implementations are often complex and experience serious problems. Failures, abandoned projects and general dissatisfaction have been well publicized in the business press. ERP systems are “expensive and difficult to implement, often imposing their own logic on a company’s strategy and existing culture” (Pozzebon, 2000).

Author(s):  
Joseph Bradley

Enterprise resource planning (ERP) systems claim to meet the information needs of organizations. These off-the-shelf software packages replace hard to maintain solutions created by IS departments or older off-the-shelf packages that often provided only piecemeal solutions to an organization’s information needs. ERP systems evolved from material requirements planning (MRP) systems and manufacturing resources planning (MRP II) systems. ERP serves the entire enterprise, not just manufacturing and inventory control as with its predecessors. ERP integrates information for the entire organization in a single database. But ERP implementations are often complex and experience serious problems. Failures, abandoned projects, and general dissatisfaction have been well publicized in the business press. ERP systems are “expensive and difficult to implement, often imposing their own logic on a company’s strategy and existing culture” (Pozzebon, 2000, p. 1015).


2013 ◽  
Vol 9 (2) ◽  
pp. 44-69 ◽  
Author(s):  
Mirian Picinini Méxas ◽  
Osvaldo Luis Gonçalves Quelhas ◽  
Helder Gomes Costa ◽  
Valdir de Jesus Lameira

Information systems have evolved at a continual pace since administrations began to develop greater interest in production processes and supply chains. This created systems like Enterprise Resource Planning (ERP), Material Requirements Planning (MRP), and Manufacturing Resources Planning (MRPII). This research discusses a literature search conducted to map the multicriteria models used to select ERP systems. As a result, this article proposes criteria and subcriteria to be used in the selection of ERP systems. The basic structure is developed around a tree and subcriteria tree that can be used as a checklist for companies wishing to acquire an ERP system.


Author(s):  
Joseph Bradley

Enterprise resource planning (ERP) systems are off-theshelf software systems that claim to meet the information needs of organizations. These systems are usually adopted to replace hard-to-maintain legacy systems developed by IS departments or older off-the-shelf packages that often provided only piecemeal solutions to the organization’s information needs. ERP systems evolved in the 1990s from material requirements planning (MRP) systems developed in the 1970s and manufacturing resources planning (MRPII) systems developed in the 1980s. ERP systems serve the entire organization, not just material or manufacturing planning. One advantage of ERP is that it integrates all the information for the entire organization into a single database. Implementation of ERP systems has proven expensive and time consuming. Failed and abandoned projects have been well publicized in the business press. ERP systems are “expensive and difficult to implement, often imposing their own logic on a company’s strategy and existing culture” (Pozzebon, 2000, p. 105). Most firms utilize a single software vendor for the complete ERP system throughout their organizations. The integrated nature of ERP software favors this single-vendor approach. An alternative strategy adopted by some firms is the best-of-breed approach, where the adopting organization picks and chooses ERP functional modules from the vendor whose software best supports its business processes. Organizations adopting best of breed believe that this approach will create a better fit with existing or required business processes, reduce or eliminate the need to customize a single-vendor solution, and reduce user resistance. Jones and Young (2006) found that 18% of companies used this approach to select ERP software packages. This article examines what the best-of-breed strategy is, when it is used, what advantage adopting companies seek, examples of best-of-breed implementations, and differences in implementation methods.


2011 ◽  
Vol 243-249 ◽  
pp. 6273-6278 ◽  
Author(s):  
Yan Fang Sun

To illustrate that the application of ERP in construction industry is feasible and necessary, this paper analyzes the business process of construction industry based on the four development phases of ERP in manufacturing -- basic MRP, closed-loop MRP, manufacturing resources planning(MRP-II), enterprise resource planning(ERP), and compares the business process between construction and manufacturing. Finally it concludes that there exist many similarities in construction and manufacturing and implement ERP in construction industry is feasible to some extent.


Author(s):  
Hedman Jonas ◽  
Johansson Björn

Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs) within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs) have increased and continue to increase, making it increasingly desirable to measure the degree of utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if the systems are not used; since ERPs are massive investments, they need to show benefits, or at least be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors influencing ERP systems utilization by testing a research model building on four dimensions: volume, breadth, diversity, and depth. The contributions of the research are: First, it provides support for the notion of diffusion found in the theory of network externalities where a critical mass is necessary to achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of volume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously. Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and potentially contributes to value and firm performance from ERP utilization.


2002 ◽  
Vol 16 (s-1) ◽  
pp. 115-126 ◽  
Author(s):  
Daniel E. O'Leary

Asking experts their opinion is an important methodology in those settings where the major issues have not been previously addressed, often early in the topic's research life cycle. Heterogeneous expert opinion (HEO) refers to gathering the opinion of experts that derive from a number of categories, e.g., partner, manager, and senior, or whether they are accountants or computer scientists. They are heterogeneous in that they are recognized as having different levels and/or types of expertise. Research of enterprise resource planning (ERP) systems must carefully examine expert opinion and determine when using HEO is appropriate and when it should be stratified. In addition, where possible, previous research needs to supplement or be compared to the HEO to determine similarities and differences with other groups.


2010 ◽  
pp. 105-114
Author(s):  
Alok Mishra

In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the competition. This chapter discusses the Enterprise Resurce Planning (ERP) systems effects and strategic perspectives in organizations. These are significant how information technology and ERP together facilitate in aligning the business in such a way so that it should lead to excellent productivity. It further explores in what ways effects of ERP system in organizations can provide sustained competitive advantage.


Author(s):  
Rogerio Atem de Carvalho ◽  
Björn Johansson

This chapter introduces basic differences between Free/Open Source Enterprise Resources Planning systems (FOS-ERP) and Proprietary ERP (P-ERP), revisiting the previous work of Carvalho (2008). Taking into account that some years has passed and the economic downturn came, it updates key aspects of FOS-ERP under both vendor and adopter perspectives. Like its predecessor, this chapter contributes to broaden the discussion around FOS-ERP, showing that its differences from its proprietary counterpart go beyond the cost factor.


2013 ◽  
pp. 1677-1689
Author(s):  
Hedman Jonas ◽  
Johansson Björn

Since deployment of Enterprise Systems (ES) such as Enterprise Resource Planning systems (ERPs) within enterprises, both Large Enterprises (LEs) as well as Small and Medium-sized Enterprises (SMEs) have increased and continue to increase, making it increasingly desirable to measure the degree of utilization of ERP systems in enterprises. One reason for this interest is that no benefits are realized if the systems are not used; since ERPs are massive investments, they need to show benefits, or at least be able to measure the benefits. However, to be able to do so, there is a need to explain ERP systems utilization and the factors that influence ERP utilization. This chapter provides an explanation of factors influencing ERP systems utilization by testing a research model building on four dimensions: volume, breadth, diversity, and depth. The contributions of the research are: First, it provides support for the notion of diffusion found in the theory of network externalities where a critical mass is necessary to achieve benefits. This can be used to better understand failures in ERP projects. Second, the use of volume, breadth and depth provide insights for use as a construct and the need to treat it more rigorously. Third, the study contributes to our understanding of the many aspects of use of IT, such as ERPs, and potentially contributes to value and firm performance from ERP utilization.


2021 ◽  
Vol 1 (4) ◽  
pp. 85-94
Author(s):  
Ліпич Л.Г. ◽  
Хілуха О.А. ◽  
Кушнір М.А.

Актуальність даної теми безпосередньо пов'язана з необхідністю підвищення рівня конкурентоспроможності українських підприємств, який у порівнянні з іноземними все ще залишається низьким. Мета статті - проаналізувати сучасні наукові розробки в області систем підтримки прийняття управлінських рішень на основі аналізу їх еволюційного розвитку. Встановлено, що розвиток ІТ - систем, які підтримують менеджмент, розпочався у 1950-1960-х роках. Найдавніші ІТ - системи називалися трансакційними або системами для обробки даних. Перші системи були простими: використовували лічильні та аналітичні машин. Вони базувалися на масових операціях, які супроводжувалися значними витратами та не високою надійністю. Ці системи використовувалися для розрахунків заробітної плати, управління матеріалами, виставлення рахунків, обліку, контролю за дебіторською та кредиторською заборгованістю, обліку робочого часу та його ефективності, а також обліку витрат виробництва. Злам 20-го та 21-го століть - це період динамічних змін у розвитку ІТ - систем, що підтримують управління, головним чином завдяки мережевим системам, корпоративним інтрамережам та системам управління знаннями. Обґрунтовано, що системи Business In-Intelligence (BI) є кульмінацією еволюції змін у сфері систем підтримки прийняття рішень та системної експертизи. Вони формують рішення що ґрунтуються на: статистиці та економетрії, операційних дослідженнях та штучному інтелекті. Генезис ІТ-систем дозволив визначити етапи розвитку інтегрованих систем управління, що розвивалися паралельно вищезгаданим поколінням систем та направлені на підтримку реалізації функцій управління. Спочатку це були системи планування вимог до матеріалів (ang. Material Requirements Planning, MRP I), створені в 1960 -х роках на основі моделі управління складськими запасами. (для виробничих підприємств), потім модель закритого циклу MRP (ang. Closed-Loop MRP) та системи планування виробничих ресурсів (ang. Manufacturing Resources Planning, MRP II). Іншою версією цих систем є системи планування ресурсів підприємства (ang. Enterprise Resources Planning, ERP), створені в 1990-х роках. Змінені функціональні наповнення цих систем призвели до появи таких версій, як ERP II, EERP (Extended ERP), @ERP, EAS (Enterprise Application Suite), eERP, IERP (Intelligent ERP ERP), ERP +, ERP III і характеризуються як нове покоління інтегрованих систем - ERP IV. Доведено, що поява нових версій систем є результатом зміни умов ведення бізнесу та можливостей, створених розвитком ІКТ.


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