ERP Usage in Practice

Author(s):  
Mary C. Jones ◽  
Randall Young

This study presents the results of an exploratory study of Fortune 1000 firms and their enterprise resource planning (ERP) usage, as well as benefits and changes they have realized from ERP. The study empirically examines ERP in these organizations to provide insight into various aspects that firms can use to evaluate how they are managing their ERP systems. Findings provide information about functionality implemented, extent to which benefits are realized, extent of ERP-related organizational changes firms have realized, and the way firms measure ERP success. The study also addresses the extent to which various types of ERP software have been implemented and whether there is a relationship between type of software and benefits. Finally, it examines ERP-enabled change in light of organizational configuration.

Author(s):  
Mary C. Jones ◽  
Randall Young

This study presents the results of an exploratory study of Fortune 1000 firms and their enterprise resource planning (ERP) usage, as well as benefits and changes they have realized from ERP. The study empirically examines ERP in these organizations to provide insight into various aspects that firms can use to evaluate how they are managing their ERP systems. Findings provide information about functionality implemented, extent to which benefits are realized, extent of ERP-related organizational changes firms have realized, and the way firms measure ERP success. The study also addresses the extent to which various types of ERP software have been implemented and whether there is a relationship between type of software and benefits. Finally, it examines ERP-enabled change in light of organizational configuration.


Author(s):  
Monideepa Tarafdar

Enterprise resource planning (ERP) systems integrate various functions and processes in organizations. ERP software is developed in the form of different modules, each of which helps to perform distinct functions within the company. The modules interface with the same database and are integrated so that workflows can be designed across different modules. The software helps standardize business processes and ensures organization-wide availability of transaction data. ERP software evolved from earlier manufacturing resource planning (MRP) systems, which included inventory management, procurement and production planning functions. The implementation of ERP software started in the early 1990s and during the late 1990s, the growth rate of the ERP market was between 30 to 40%. As of 2001, 30,000 companies around the world had implemented ERP and the total value of the ERP market was at $25 billion. There is not much literature relating to ERP implementation and adoption in companies in Asia and other parts of the developing world. These organizations face issues that are significantly different from those faced by organizations in the developed world, because of differences in the sophistication of IT use, and in the cultural and social contexts. In this article, we describe some experiences that companies in India have gone through in implementing ERP systems. We present a framework for analyzing the critical factors and issues that influence the ERP adoption process, and highlight the areas of opportunity and risk. The framework is sufficiently general so as to be extended to other developing countries.


Author(s):  
Mark I. Hwang

Systems integration has been an important topic ever since businesses started using mainframes to run their back-office operations. These systems specialized in common tasks found in functional areas such as accounts receivable and accounts payable, inventory, purchasing, and ordering. However, getting information from these fragmented systems to get a whole picture view of the business was extremely difficult if not impossible. By integrating back-office operations into a single system, enterprise resource planning (ERP) was supposed to solve that problem. In reality, however, very few companies fully implement all the modules of an ERP package and most continue to rely on legacy systems and other specialized software for their processing needs Integration of ERP with various enterprise applications remains a challenge. Moreover, it is not uncommon to have ERP software from different vendors or multiple copies of ERP software from the same vendor running in the same company. Integrating multiple instances of ERP software will be the predominant ERP project in most large corporations in the next half decade. Finally, many companies pursue merger and acquisition as a major growth strategy. A critical task in merging two companies nowadays involves integrating their ERP systems. This paper addresses these integration issues involving ERP systems. Common tools for integration and success factors for integration projects are discussed.


Author(s):  
Dirk Werth ◽  
Paul Makuch

Nowadays the majority of enterprises use Enterprise Resource Planning (ERP) software to improve their business processes. Simultaneously, mobile technologies which can be used within ERP have gained further importance. This is because ERP, together with mobile technologies, offers a wide spectrum of synergies and both have a significant impact on enterprise efficiency. The improvement possibilities in ERP due to mobility range from sales activities, over logistic processes, up to effects on the human resource management.


2019 ◽  
Vol 292 ◽  
pp. 03007
Author(s):  
Marko Mijač ◽  
Ruben Picek ◽  
Darko Andročec

From the very beginnings of software era, enterprise environments have been one of the greatest generators of demand for complex software systems. Attempts to satisfy these ever growing needs for enterprise software systems have had a m ixed success. Software reuse has been one of the leverage mechanisms software producers had at their disposal, and through the year’s different reuse approaches emerged. One of the most successful large scale reuse approaches in enterprise environment are Enterprise Resource Planning (ERP) systems, which intend to reuse domain analysis and best practices in doing business, as well as software design and implementation. However, in literature, ERP systems are seldom viewed and described as one of the reuse approaches. Therefore, in this paper we aim at systematically analyzing ERP systems from the software reuse perspective in order to gain better insight into their characteristics, constituent elements, and relationships.


2016 ◽  
Vol 11 (01) ◽  
Author(s):  
Pallavi Jain ◽  
Jai Kishore Tyagi

The purpose of this research paper to present thesynthesized theoretical and empirical literature to help in thedevelopment of propositions and suggestions of a researchagenda on the acceptance of ERP systems and their link with financial performance. The paper develops the technologyacceptance model (TAM) to synthesize relevant literature andto develop proposition for future research agendas. This researchprovides a positive association between the acceptance of ERPsystems and financial performance. Also, the use of TAMtheory provides further insight into identifying the acceptancefactors of ERP.


Author(s):  
Sara AlMuhayfith ◽  
Hani Shaiti

Small and medium enterprises (SMEs) have played an important role in economic development. The increasing number of SMEs have resulted in the business landscape to become more and more competitive. This has made SMEs to also undergo great challenges to be able to maintain their existence and expand their businesses. It is argued that the enterprise resource planning system (ERPs) can improve business performance. Therefore, the primary purpose of this study is to examine the impact of an ERPs usage on the financial and non-financial performance of the Saudi SMEs. An exploratory study has been used to identify the factors contributing to the effective and successful use of an ERP system. The findings indicate seven contingency factors. Based on the exploratory study results, three hypotheses have been developed and tested in a quantitative study. A survey is constructed and sent to 200 Saudi SMEs that adopted the ERP systems. About 120 valid responses have been received. For data analysis and hypothesis testing, a structural equation modelling (SEM) tool has been adopted. The results depict that management support, user satisfaction, and training significantly impact the ERPs usage. Another significant finding is that ERP systems enhance SMEs’ performance.


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.


Author(s):  
Jaideep Motwani ◽  
Asli Yagmur Akbulut

In today’s dynamic business environment; customer needs, competition, globalization, and technology have combined to produce a powerful effect on the process of delivering goods and services to the marketplace. According to Closs and Stank (1999, p. 59), businesses have abandoned the “vertical, functional organizational structure characteristic of traditional procurement, manufacturing and physical distribution operation in favor of a more horizontal, cross-functional structure that permits integration of knowledge across functional areas.” Enterprise resource planning (ERP) systems, by their multidimensional, integrative, and normative nature, offer the depth of functionality and breadth of integration required for managing global operations of business organizations. Hammer (1999) concludes that the use of ERP software forces firms to become integrated enterprises that demand strong understanding of key business processes and very high level of teamwork. The effectiveness of ERP systems as an integrating mechanism in businesses suggests that ERP software can be used as an integrating mechanism in business school curricula, too. As a result, an increasing number of universities have attempted or are planning to incorporate popular enterprise system software products such as SAP R/3 into the business school curricula (Bradford, Vijayaraman, & Chandra, 2003; Corbitt & Mensching, 2000; Johnson, Lorents, Morgan, & Ozmun, 2004). This article attempts to provide a proactive approach to implementing ERP systems into a business school curriculum.


Author(s):  
Paul Chou

In order to survive in competitive markets, modern organizations introduce enterprise resourcing planning systems to enhance their competitive positions and their survivability in competitive markets. Nevertheless, organizations often fail to utilize and explore this new system's functionalities to achieve business objectives and have not fulfilled their expected effectiveness after adopting it. Given that countless companies fail to implement ERP systems successfully in recent decades, the aim of this study is to explore the inner workings of employees' attitudes towards ERP systems from the perspective organizational change. The results from a sample of 334 respondents in Taiwan provide additional insight into the mechanism through which transformational leadership influences employees' attitudes towards ERP systems.


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