ERP and the Best-of-Breed Alternative

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.

Enterprise Resource Planning (ERP) systems are implemented in companies to improve their business processes. An ERP system entails extensive functional and technological aspects during its implementation. Teaching ERP systems for computer science students implies addressing these two aspects: ERP functionality and technological features. It is a challenge for teachers to design practical experimentation that students can perform in the teaching environment, due to the prerequisite of a deep understanding of the business processes, business user requirements, and the technological complexity of ERP systems. In order to improve student skills in ERP systems, we encourage active learning among students. In this chapter, we present a methodology using open and closed practicals to learn about both technical and functional aspects of ERP systems. Using these practicals allows us to prepare and organize this teaching/ learning process.


2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


Author(s):  
Cesar Alexandre de Souza ◽  
Ronaldo Zwicker

The 90’s witnessed an impressive growth of Enterprise Resource Planning (ERP) systems in the market of corporate IT solutions. For instance, O´Leary (2000) reports that a single ERP system (SAP´s R/3) is used by more than 60% of the multinational firms. Among the explanations for this phenomenon are the competitive pressures suffered by the companies that have forced them to seek alternatives for cost reduction, differentiation of products and services and integration of their business processes. The ERP systems evolved exploiting the need for quick deployment of integrated systems to meet these new business requirements, while companies were (and still are) under pressure to outsource all the activities that are not embraced by their core business.


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):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).


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.


Author(s):  
Biswadip Ghosh ◽  
Tom Yoon ◽  
Janos Fustos

Enterprise Resource Planning (ERP) systems, such as SAP, feature a rich set of integrated business applications. However, to maximize the long term benefits from ERP implementations, organizations need to careful manage the post-implementation phase and focus on supporting end users to achieve better fit between their business processes and the ERP system features. This study develops a research model based on the resource-based view (RBV) of the firm and finds support for a positive and complementary relationship between continuous training resources, functional fit capability and business process success. An increase in continuous training resources increases the functional fit capability for the organization and is seen to improve business process success. The results support the need to focus on continuous end user training throughout the post implementation phase as a key contributor to ERP systems success for any organization.


For small and medium-sized companies the fit between their business processes and their Enterprise Resource Planning (ERP) system is a critical success factor. The functions and features for essential tasks must be geared to the demands and skills of the individual users. This paper reports on the usefulness of several methods for eliciting user input which served as a basis for requirements for a personalized ERP system. It describes the yield of heuristic evaluations, both by experts and by developers, and a focus group with six users representing the main user types. The focus group consisted of an identification of the most important functions, task demonstrations, and a mini design workshop. As a demonstration of the results of the various user-focused methods, some noteworthy findings on the personalization of ERP systems are presented.


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).


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.


Sign in / Sign up

Export Citation Format

Share Document