Next-Generation Enterprise Systems

Author(s):  
Charles Møller

“ERP is dead - long live ERP II” was the title of a path breaking research note from Gartner Group (Bond, Genovese, Miklovic, Wood, Zrimsek, & Rayner, 2000). In this research note, Gartner Group envisions how the ERP vendors respond to market challenges and how ERP and ERP strategies evolved by 2005. Gartner Group defines ERP II as a transformation of ERP (Enterprise Resource Planning), and today the major vendors have adopted this concept in their contemporary ERP packages. ERP (Enterprise Resource Planning) is an important concept to industry. Enterprises are increasingly implementing packaged ERP systems. A recent study confirmed that over 90% of the 500 largest Danish enterprises have adopted one or more ERP system. Further, the study found the systems to be of an average age of 2.8 years and decreasing (Møller, 2005a). ERP is a standardized software package designed to integrate the internal value chain of an enterprise (Klaus, Rosemann, & Gable, 2000). In 2002, the five major ERP vendors were: (i) SAP; (ii) Oracle; (iii) Peoplesoft; (iv) SAGE; and (v) Microsoft Business Solutions. They controled almost 50% of the ERP market (c.f. Table 1) and consequently the corporate infrastructure is dominated by the design of these systems and the vendors. By 2006, the market is consolidated and many of the smaller vendors have been merged with larger vendors. Oracle acquired PeopleSoft and JD Edwards and the global market seems to be dominated by SAP, Oracle and Microsoft. According to Nah (2002) the American Production and Inventory Control Society (APICS) defines ERP as: “a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.” This definition expresses ERP as a tool but ERP is also a management vision and an agency of change and ERP has been attributed to almost any good or bad that IT may bring about in business. In the late 1990s, the ERP hype was primarily motivated by companies rushing to prepare for Y2K (Calloway, 2000). Then, after a short recession the adoption of ERP has continued. Davenport’s sequel on enterprise systems (Davenport, 1998, 2000; Davenport & Brooks, 2004) illustrates the changing business perspective on ERP and the ERP hype. Davenport (1998) sums up the first wave of experiences from implementing ERP systems in a much cited paper on “putting the enterprise system into the enterprise,” and points to the new potential business impact of the ERP systems. The discussion evolved over the first enthusiastic expectations, continued over a growing number of horror stories about failed or out-of-control projects, toward a renewed hype of expectations on e-business and SCM. The ERP II concept is the software industry’s perception of the new business challenges and the vision addresses the issues of e-business integration in the supply chain. ERP II is the next-generation ERP concept and in a few years from now the ERP II vision is going to be institutionalized into the infrastructure of most enterprises. This article will portray the conceptual framework of ERP II.

2010 ◽  
pp. 2126-2133
Author(s):  
Charles Møller

“ERP is dead - long live ERP II” was the title of a path breaking research note from Gartner Group (Bond, Genovese, Miklovic, Wood, Zrimsek, & Rayner, 2000). In this research note, Gartner Group envisions how the ERP vendors respond to market challenges and how ERP and ERP strategies evolved by 2005. Gartner Group defines ERP II as a transformation of ERP (Enterprise Resource Planning), and today the major vendors have adopted this concept in their contemporary ERP packages. ERP (Enterprise Resource Planning) is an important concept to industry. Enterprises are increasingly implementing packaged ERP systems. A recent study confirmed that over 90% of the 500 largest Danish enterprises have adopted one or more ERP system. Further, the study found the systems to be of an average age of 2.8 years and decreasing (Møller, 2005a). ERP is a standardized software package designed to integrate the internal value chain of an enterprise (Klaus, Rosemann, & Gable, 2000). In 2002, the five major ERP vendors were: (i) SAP; (ii) Oracle; (iii) Peoplesoft; (iv) SAGE; and (v) Microsoft Business Solutions. They controled almost 50% of the ERP market (c.f. Table 1) and consequently the corporate infrastructure is dominated by the design of these systems and the vendors. By 2006, the market is consolidated and many of the smaller vendors have been merged with larger vendors. Oracle acquired PeopleSoft and JD Edwards and the global market seems to be dominated by SAP, Oracle and Microsoft. According to Nah (2002) the American Production and Inventory Control Society (APICS) defines ERP as: “a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.” This definition expresses ERP as a tool but ERP is also a management vision and an agency of change and ERP has been attributed to almost any good or bad that IT may bring about in business. In the late 1990s, the ERP hype was primarily motivated by companies rushing to prepare for Y2K (Calloway, 2000). Then, after a short recession the adoption of ERP has continued. Davenport’s sequel on enterprise systems (Davenport, 1998, 2000; Davenport & Brooks, 2004) illustrates the changing business perspective on ERP and the ERP hype. Davenport (1998) sums up the first wave of experiences from implementing ERP systems in a much cited paper on “putting the enterprise system into the enterprise,” and points to the new potential business impact of the ERP systems. The discussion evolved over the first enthusiastic expectations, continued over a growing number of horror stories about failed or out-of-control projects, toward a renewed hype of expectations on e-business and SCM. The ERP II concept is the software industry’s perception of the new business challenges and the vision addresses the issues of e-business integration in the supply chain. ERP II is the next-generation ERP concept and in a few years from now the ERP II vision is going to be institutionalized into the infrastructure of most enterprises. This article will portray the conceptual framework of ERP II.


2011 ◽  
pp. 1789-1796
Author(s):  
Charles Møller

“ERP is dead - long live ERP II” was the title of a path breaking research note from Gartner Group (Bond, Genovese, Miklovic, Wood, Zrimsek, & Rayner, 2000). In this research note, Gartner Group envisions how the ERP vendors respond to market challenges and how ERP and ERP strategies evolved by 2005. Gartner Group defines ERP II as a transformation of ERP (Enterprise Resource Planning), and today the major vendors have adopted this concept in their contemporary ERP packages. ERP (Enterprise Resource Planning) is an important concept to industry. Enterprises are increasingly implementing packaged ERP systems. A recent study confirmed that over 90% of the 500 largest Danish enterprises have adopted one or more ERP system. Further, the study found the systems to be of an average age of 2.8 years and decreasing (Møller, 2005a). ERP is a standardized software package designed to integrate the internal value chain of an enterprise (Klaus, Rosemann, & Gable, 2000). In 2002, the five major ERP vendors were: (i) SAP; (ii) Oracle; (iii) Peoplesoft; (iv) SAGE; and (v) Microsoft Business Solutions. They controled almost 50% of the ERP market (c.f. Table 1) and consequently the corporate infrastructure is dominated by the design of these systems and the vendors. By 2006, the market is consolidated and many of the smaller vendors have been merged with larger vendors. Oracle acquired PeopleSoft and JD Edwards and the global market seems to be dominated by SAP, Oracle and Microsoft. According to Nah (2002) the American Production and Inventory Control Society (APICS) defines ERP as: “a method for the effective planning and controlling of all the resources needed to take, make, ship and account for customer orders in a manufacturing, distribution or service company.” This definition expresses ERP as a tool but ERP is also a management vision and an agency of change and ERP has been attributed to almost any good or bad that IT may bring about in business. In the late 1990s, the ERP hype was primarily motivated by companies rushing to prepare for Y2K (Calloway, 2000). Then, after a short recession the adoption of ERP has continued. Davenport’s sequel on enterprise systems (Davenport, 1998, 2000; Davenport & Brooks, 2004) illustrates the changing business perspective on ERP and the ERP hype. Davenport (1998) sums up the first wave of experiences from implementing ERP systems in a much cited paper on “putting the enterprise system into the enterprise,” and points to the new potential business impact of the ERP systems. The discussion evolved over the first enthusiastic expectations, continued over a growing number of horror stories about failed or out-of-control projects, toward a renewed hype of expectations on e-business and SCM. The ERP II concept is the software industry’s perception of the new business challenges and the vision addresses the issues of e-business integration in the supply chain. ERP II is the next-generation ERP concept and in a few years from now the ERP II vision is going to be institutionalized into the infrastructure of most enterprises. This article will portray the conceptual framework of ERP II.


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.


2021 ◽  
Vol 11 (11) ◽  
pp. 4937
Author(s):  
Adam Domagała ◽  
Katarzyna Grobler-Dębska ◽  
Jarosław Wąs ◽  
Edyta Kucharska

The paper deals with problems in the post-implementation phase of management Enterprise Resource Planning (ERP) systems. Proper management of the system maintenance stage is a basis for efficient system development in terms of business needs. Based on the research and analysis of collected materials, it turns out that making a decision to upgrade the system is equally crucial. We present revealed mechanisms determining the post-implementation approach to upgrade or reimplement the ERP system. The main aim is to determine the methodology and difference understanding to achieve success in the post-implementation stage. The paper shows that the systemic approach to the maintenance stage of the ERP system affects its further decisions: upgrade or reimplement. It has a direct impact on future maintenance costs and the scope of new business demands. This research is an outcome of industry–academia collaboration and based on several developed implementation systems, achieved upgrade and reimplementation projects. Based on case study analysis, we show that reimplementation means an evolution of the current ERP processes rather than another attempt to “reimplement” an unsuccessful system implementation. On the other hand, upgrades are not only a tool or system actualization but the easiest way to bolster company sustainability and to have the information system up to date. The issues discussed in the article will be used to develop changes in the implementation methodology of ERP systems.


2014 ◽  
Vol 933 ◽  
pp. 860-868
Author(s):  
Muneam Zamzeer Al-Magsoosi

Successful implementation of ERP systems should take full advantage of the access to information, but not be constrained by many of the deficiencies associated with infinite capacity scheduling methodologies. In this paper an algorithm is developed which improves the performance of the ERP system. Lot sizing decisions based on capacity availability are used as an instrument to integrate more effectively capacity requirements planning (CRP) and Material Requirements Planning (MRP). MRP is a planning tool for a sub-set of manufacturing system specially in hierarchal multi-product, multi-period and multi-stage production planning and inventory control system. The Vehicle used for this integration is planned order release (POR) quantity. The algorithm requires minimal deviation from the MRP logic. In this sequential process MRP first issues the action notices and then the algorithm analyses the capacity situation in the work centers. The algorithm scans all planned order release quantities of lower level items in the action bucket before orders are released to the shop. For each item a delta value is computed identifying the degree orders are contributing to capacity problems. This delta is specific to each POR. The POR causing the highest overload and the one passing through the lowest utilized work centers are selected for a lot size decrease, respectively, an increase. After identifying the candidates, a series of checks analyses the suitability of the candidates for that change. The planned order release quantities of more items can be performed. Projected capacity profile after iteration will be updated and capacity requirements over a short duration are smoothed. The experiments are performed with MAP/3000 as a simulation model for this study. The developed algorithm is added to MAP/3000 as additional subroutines. The design of the experiments consists of a base test identifying the significance of different environmental parameters of MRP systems and a main test which performs a detailed evaluation. The results are evaluated using analysis of variance techniques. Most ERP systems built on the historical development of MRP and CRP systems, and the assumption of infinite capacity is affecting the performance of those systems badly. This paper is presenting an algorithm to smooth capacity problems by using the existed capacity.


2004 ◽  
Vol 31 (2) ◽  
pp. 263-271 ◽  
Author(s):  
Sangyoub Lee ◽  
Ahsan Ullah Arif ◽  
Hyounseung Jang

The enterprise resource planning (ERP) system can integrate the major business management functions of the enterprise with a single common database to allow sharing of all information and achieve efficient communications between management functions. Based on the needs of running a construction enterprise, ERP shows potential applicability to the construction industry. This paper sought to quantify the benefits of ERP systems when applied to construction materials procurement. Specifically, this paper briefly described the business processes involved in construction materials procurement and illustrated how ERP systems could be implemented and the efficiency of the construction materials management system consequently enhanced. The transformation from a non-ERP system into an ERP system through application integration, internal integration, external integration, and automation were simulated. Results show that the individual task improvements of models can increase the productivity of the materials management cycle by up to 5.2%, 18.2%, 27.8%, 13.5%, and 79.2% through internal integration, external integration, application integration, automation, and ERP system, respectively, by automating most of the repeated transactions and reducing manpower required to perform the tasks.Key words: enterprise resource planning, materials management system, productivity, simulation.


2004 ◽  
Vol 1 (1) ◽  
pp. 63-72 ◽  
Author(s):  
Daniel E. O'Leary

This paper uses a database, derived from a data repository, in order to do an analysis of enterprise resource planning (ERP) system benefits. ERP benefits are important for a number of reasons, including establishing a match between what ERP systems benefits are—as compared to ERP expectations—setting a benchmark for other firms, and measuring those benefits. ERP benefits also are central to the business case for deciding whether a firm will invest in an ERP system. It is found that some benefits vary across industry, while others seem to be important to firms independent of industry. In particular, tangible benefits are largely industry-independent, while intangible benefits vary across industry. In addition, when compared to an earlier study by Deloitte Consulting, the results are statistically consistent with their findings, but find substantial additional intangible benefits.


Author(s):  
Muhammad Shaikh ◽  
Libi Shen

Enterprise resource planning (ERP) systems are considered, by many, to be extremely solid, while giving organizations the ability to quickly capture and manage data across diverse sectors. Because the successful employment of an ERP system depends upon skillful implementation, specific factors contributing to successful ERP implementation are essential. What are the critical factors in the implementation of ERP system? How do company administrators and IT professionals perceive the critical successful factors for the effective implementation of the ERP? How are critical successful factors defined? How do IT professionals perceive the influence of critical factors on the effective implementation of ERP in a Phoenix company? In this chapter, the critical successful factors in the implementation of ERP systems will be explored. A single case study was conducted, and the interview data were gathered from 15 IT professionals in a Phoenix, Arizona company. Problems, solutions, recommendations, and future research direction will be presented.


Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.


Author(s):  
Chun Meng Tang ◽  
Govindan Marthandan

When business managers are considering whether to invest in an enterprise resource planning (ERP) system, they ask the question: “What are the returns on investment?” When the ERP system is implemented and in operation, business managers ask another question: “How successful is the system?” To answer these questions, clues can be found by examining organizational effectiveness improvements as a result of ERP system implementation. This paper suggests that being able to identify the dimensions of organizational effectiveness is enabled by ERP systems. Together with positive organizational effectiveness improvements, the business value of ERP systems can be demonstrated. To provide the evidence needed to support the notion, a confirmatory factor analysis (CFA) was conducted. Analyses reveal that the construct of IS-enabled organizational effectiveness can be modeled, at a higher-order abstraction level, as a third-order construct manifested by three second-order constructs and ten first-order constructs.


Sign in / Sign up

Export Citation Format

Share Document