Enterprise Resource Planning System Risks and Rewards

Author(s):  
Joseph Bradley

Enterprise Resource Planning systems have proven difficult and costly to implement. Organizations must consider the risks and rewards of embarking on complex and time consuming implementation projects. This chapter explores why firms adopt ERP systems, identifies the benefits firms seek, discusses the various risks firms face as they adopt these systems, and suggests ways firms can manage these risks.

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.


2017 ◽  
Vol 7 (3) ◽  
pp. 15-26
Author(s):  
Saeed Rouhani ◽  
Somayeh Hosseini ◽  
Mehdi Shami Zanjani

Due to response to the business goals, organizations need to implement enterprise resource planning systems. But the risk of failure in the implementation project of these systems is so high, therefore paying close attention to the effective factors of implementation is very necessary. One of the effective factors is knowledge management (KM). In this study, the role of Knowledge management processes in implementation of enterprise resource planning systems is studied and the existence of knowledge management as a required factor will be emphasized. Research data, in the questionnaire format have been gathered from experts in the field of enterprise resource planning system in Iranian companies. Some of the studied organizations have implemented this system and others were in the implementing phase. Data analysis with structural equation modeling (SEM) methodology by Lisrel software shows positive relation between knowledge management processes and Success of enterprise resource planning system implementation.


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.


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.


2020 ◽  
Vol 16 (4) ◽  
pp. 146-160
Author(s):  
Alexander Novikov ◽  
Marina V. Sazonova

The article is dedicated to pointing out the main principles of choosing modern enterprise resource planning (ERP) system for highly technological domestic enterprises. The article provides criteria for choosing ERP system and the risk group for their implementation. The close dependence of the success of the implementation of ERP systems on the proportion of projects for which the budget has not been exceeded has been revealed; the share of projects for which the excess of the actual period over the planned period of the project occurred and the share of implementation of solutions of the “box” type. The authors conclude that it is necessary to develop an information system that meets the specifics of a particular enterprise, as well as careful planning for the timing and cost of implementing this system.


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.


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.


2011 ◽  
pp. 1318-1326
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):  
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.


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