An Overview of Enterprise Resource Planning for Intelligent Enterprises

2010 ◽  
pp. 60-68
Author(s):  
Jose M. Framinan ◽  
Jose M. Molina
Keyword(s):  
Best Practices ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Mrp Ii ◽  
Administrative Functions ◽  
Access To Data

Enterprise resource planning systems can be defined as customizable, standard application software which includes integrated business solutions for the core processes and administrative functions (Chan & Rosemann, 2001). From an operative perspective, ERP systems provide a common technological platform unique for the entire corporation allowing the replacement of mainframes and legacy systems. This common platform serves to process automation as well as to simplify current process either by an explicit reengineering process or by the implicit adoption of the system “best practices” (Markus & Tanis, 2000). Finally, the common centralized platform allows the access to data that previously were physically or logically dispersed. The automation of the processes and the access to data allows the reduction of operating times (thus reducing operating costs) while the latter serves to a better support of business decisions (see e.g., Umble, Haft & Umble, 2003 for a detailed review of ERP benefits). ERP is considered to provide businesses with new opportunities to acquire knowledge (Srivardhana & Pawlowski, 2007), being the sources of knowledge the aforementioned best practices from the ERP, and the ERP software company’s staff during the implementation phase. At present, ERP systems are either used or implemented in a large number of enterprises. According to Genoulaz and Millet (2006), up to 74% of manufacturing companies and up to 59% of service companies use an ERP system. In addition, more than 70% of Fortune 1000 companies have implemented core ERP applications (Bingi, Sharma, Godla, 1999; Yen, Chou & Chang, 2002). The objectives for implementing an ERP system can be classified as operational, strategic, dual (operational plus strategic), or without objective (Law & Ngai, 2007). The adoption of an ERP system with operational objectives is aimed at improvement operating efficiency together with the reduction of costs, while companies implementing ERP with a strategic objective would experience a change in business processes, improving sales and market expansion. A widespread critique to ERP systems is their high total cost of ownership (Al-Mashari, Al-Mudimigh & Zairi, 2003) and hidden costs in implementation (Kwon & Lee, 2001). Besides, ERP systems impose their own logic on an organization’s strategy and culture (Davenport, 1998), so ERP adopters must adapt their business processes and organization to these models and rules. Consequently, organizations may face difficulties through this adaptation process which is usually carried out without widespread employee involvement. This may cause sore employees, sterile results due to the lack of critical information usually provided by the employees; and also late delivery, with reduced functionality, and/or with higher costs that expected (Kraemmeraard, Moeller & Boer, 2003). Additionally, some analysts have speculated that widespread adoption of the same ERP package in the same industry might lead to loss of competitive advantage due to the elimination of process innovation-based competitive advantage (Davenport, 1998). This has been observed, for instance, in the semiconductor manufacturers sector (Markus & Tanis, 2000). The early stage of ERP was carried out through Materials Requirement Planning (MRP) systems (Umble, Haft & Umble, 2003). The next generation of these systems, MRP II (Manufacturing Resources Planning), crossed the boundaries of the production functionality and started supporting not only manufacturing, but also finance and marketing decisions (Ptak & Schragenheim, 2000). Current ERP systems appeared in the beginning of the 1990’s as evolved MRP II, incorporating aspects from CIM (Computer Integrated Manufacturing) as well as from EDP (Electronic Data Processing). Therefore, ERP systems become enterprise-wide, multilevel decision support systems. ERP systems continue evolving, incorporating Manufacturing Execution Systems (MES), Supply Chain Management (SCM), Product Data Management (PDM), or Geographic Information Systems (GIS), among others (Kwon & Lee, 2001).

An Overview of Enterprise Resource Planning for Intelligent Enterprises

2010 ◽  
pp. 100-108 ◽  
Author(s):  
Jose M. Framinan ◽  
Jose M. Molina
Keyword(s):  
Best Practices ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Mrp Ii ◽  
Administrative Functions ◽  
Access To Data

Enterprise resource planning systems can be defined as customizable, standard application software which includes integrated business solutions for the core processes and administrative functions (Chan & Rosemann, 2001). From an operative perspective, ERP systems provide a common technological platform unique for the entire corporation allowing the replacement of mainframes and legacy systems. This common platform serves to process automation as well as to simplify current process either by an explicit reengineering process or by the implicit adoption of the system “best practices” (Markus & Tanis, 2000). Finally, the common centralized platform allows the access to data that previously were physically or logically dispersed. The automation of the processes and the access to data allows the reduction of operating times (thus reducing operating costs) while the latter serves to a better support of business decisions (see e.g., Umble, Haft & Umble, 2003 for a detailed review of ERP benefits). ERP is considered to provide businesses with new opportunities to acquire knowledge (Srivardhana & Pawlowski, 2007), being the sources of knowledge the aforementioned best practices from the ERP, and the ERP software company’s staff during the implementation phase. At present, ERP systems are either used or implemented in a large number of enterprises. According to Genoulaz and Millet (2006), up to 74% of manufacturing companies and up to 59% of service companies use an ERP system. In addition, more than 70% of Fortune 1000 companies have implemented core ERP applications (Bingi, Sharma, Godla, 1999; Yen, Chou & Chang, 2002). The objectives for implementing an ERP system can be classified as operational, strategic, dual (operational plus strategic), or without objective (Law & Ngai, 2007). The adoption of an ERP system with operational objectives is aimed at improvement operating efficiency together with the reduction of costs, while companies implementing ERP with a strategic objective would experience a change in business processes, improving sales and market expansion. A widespread critique to ERP systems is their high total cost of ownership (Al-Mashari, Al-Mudimigh & Zairi, 2003) and hidden costs in implementation (Kwon & Lee, 2001). Besides, ERP systems impose their own logic on an organization’s strategy and culture (Davenport, 1998), so ERP adopters must adapt their business processes and organization to these models and rules. Consequently, organizations may face difficulties through this adaptation process which is usually carried out without widespread employee involvement. This may cause sore employees, sterile results due to the lack of critical information usually provided by the employees; and also late delivery, with reduced functionality, and/or with higher costs that expected (Kraemmeraard, Moeller & Boer, 2003). Additionally, some analysts have speculated that widespread adoption of the same ERP package in the same industry might lead to loss of competitive advantage due to the elimination of process innovation-based competitive advantage (Davenport, 1998). This has been observed, for instance, in the semiconductor manufacturers sector (Markus & Tanis, 2000). The early stage of ERP was carried out through Materials Requirement Planning (MRP) systems (Umble, Haft & Umble, 2003). The next generation of these systems, MRP II (Manufacturing Resources Planning), crossed the boundaries of the production functionality and started supporting not only manufacturing, but also finance and marketing decisions (Ptak & Schragenheim, 2000). Current ERP systems appeared in the beginning of the 1990’s as evolved MRP II, incorporating aspects from CIM (Computer Integrated Manufacturing) as well as from EDP (Electronic Data Processing). Therefore, ERP systems become enterprise-wide, multilevel decision support systems. ERP systems continue evolving, incorporating Manufacturing Execution Systems (MES), Supply Chain Management (SCM), Product Data Management (PDM), or Geographic Information Systems (GIS), among others (Kwon & Lee, 2001).

An Overview of Enterprise Resource Planning for Intelligent Enterprises

2010 ◽  
pp. 2958-2963
Author(s):  
Jose M. Framinan ◽  
Jose M. Molina
Keyword(s):  
Best Practices ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Mrp Ii ◽  
Administrative Functions ◽  
Access To Data

Enterprise resource planning systems can be defined as customizable, standard application software which includes integrated business solutions for the core processes and administrative functions (Chan & Rosemann, 2001). From an operative perspective, ERP systems provide a common technological platform unique for the entire corporation allowing the replacement of mainframes and legacy systems. This common platform serves to process automation as well as to simplify current process either by an explicit reengineering process or by the implicit adoption of the system “best practices” (Markus & Tanis, 2000). Finally, the common centralized platform allows the access to data that previously were physically or logically dispersed. The automation of the processes and the access to data allows the reduction of operating times (thus reducing operating costs) while the latter serves to a better support of business decisions (see e.g., Umble, Haft & Umble, 2003 for a detailed review of ERP benefits). ERP is considered to provide businesses with new opportunities to acquire knowledge (Srivardhana & Pawlowski, 2007), being the sources of knowledge the aforementioned best practices from the ERP, and the ERP software company’s staff during the implementation phase. At present, ERP systems are either used or implemented in a large number of enterprises. According to Genoulaz and Millet (2006), up to 74% of manufacturing companies and up to 59% of service companies use an ERP system. In addition, more than 70% of Fortune 1000 companies have implemented core ERP applications (Bingi, Sharma, Godla, 1999; Yen, Chou & Chang, 2002). The objectives for implementing an ERP system can be classified as operational, strategic, dual (operational plus strategic), or without objective (Law & Ngai, 2007). The adoption of an ERP system with operational objectives is aimed at improvement operating efficiency together with the reduction of costs, while companies implementing ERP with a strategic objective would experience a change in business processes, improving sales and market expansion. A widespread critique to ERP systems is their high total cost of ownership (Al-Mashari, Al-Mudimigh & Zairi, 2003) and hidden costs in implementation (Kwon & Lee, 2001). Besides, ERP systems impose their own logic on an organization’s strategy and culture (Davenport, 1998), so ERP adopters must adapt their business processes and organization to these models and rules. Consequently, organizations may face difficulties through this adaptation process which is usually carried out without widespread employee involvement. This may cause sore employees, sterile results due to the lack of critical information usually provided by the employees; and also late delivery, with reduced functionality, and/or with higher costs that expected (Kraemmeraard, Moeller & Boer, 2003). Additionally, some analysts have speculated that widespread adoption of the same ERP package in the same industry might lead to loss of competitive advantage due to the elimination of process innovation-based competitive advantage (Davenport, 1998). This has been observed, for instance, in the semiconductor manufacturers sector (Markus & Tanis, 2000). The early stage of ERP was carried out through Materials Requirement Planning (MRP) systems (Umble, Haft & Umble, 2003). The next generation of these systems, MRP II (Manufacturing Resources Planning), crossed the boundaries of the production functionality and started supporting not only manufacturing, but also finance and marketing decisions (Ptak & Schragenheim, 2000). Current ERP systems appeared in the beginning of the 1990’s as evolved MRP II, incorporating aspects from CIM (Computer Integrated Manufacturing) as well as from EDP (Electronic Data Processing). Therefore, ERP systems become enterprise-wide, multilevel decision support systems. ERP systems continue evolving, incorporating Manufacturing Execution Systems (MES), Supply Chain Management (SCM), Product Data Management (PDM), or Geographic Information Systems (GIS), among others (Kwon & Lee, 2001).

Applying Collaboration Theory for Improving ERP System-User Interaction

2011 ◽  
pp. 1-21
Author(s):  
Wendy Lucas ◽  
Tamara Babaian ◽  
Heikki Topi
Keyword(s):  
Enterprise Resource Planning ◽  
Business Processes ◽  
Negative Impact ◽  
Employee Performance ◽  
User Interaction ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
System User ◽  
Access To Data

Enterprise resource planning (ERP) systems automate business processes and provide access to data from worldwide operations. These systems remain difficult to learn and use, however, despite the vast resources devoted to employee training and the reams of documentation provided by their manufactures. Oftentimes, even well trained employees will appeal to more knowledgeable users for help or will augment their system use with other software, such as spreadsheet or database applications. The need for such practices has a negative impact on employee performance and the ability of companies to reap the full benefits afforded by ERP systems. To enhance their usability, and thereby increase their usefulness to organizations, we propose the application of collaboration theory to ERP system design. Conceptualizing the relationship between the user and the system as one in which the system works in partnership with the user provides a development framework targeted at helping users achieve their system-related goals.

Open and Closed Practicals for Enterprise Resource Planning (ERP) Learning

2011 ◽  
pp. 138-152 ◽  
Keyword(s):  
Enterprise Resource Planning ◽  
Business Processes ◽  
Deep Understanding ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Technological Complexity ◽  
Functional Aspects ◽  
Business User ◽  
Teaching Learning

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.

Critical Success Factors of ERP Implementation

2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Critical Success ◽  
Systems Implementation ◽  
Sales And Marketing ◽  
Share Data

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).

Life Cycle of ERP Systems

2005 ◽  
pp. 1844-1849
Author(s):  
Cesar Alexandre de Souza ◽  
Ronaldo Zwicker
Keyword(s):  
Life Cycle ◽  
Enterprise Resource Planning ◽  
Multinational Firms ◽  
Business Processes ◽  
Resource Planning ◽  
Integrated Systems ◽  
Erp Systems ◽  
Erp System ◽  
New Business ◽  
Business Requirements

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.

Critical Success Factors of ERP Implementation

2005 ◽  
pp. 628-633 ◽  
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Critical Success ◽  
Systems Implementation ◽  
Sales And Marketing ◽  
Share Data

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).

Enhancing Functional Fit with Continuous Training During the ERP Post-Implementation Phase

2013 ◽  
Vol 5 (2) ◽  
pp. 30-45 ◽  
Author(s):  
Biswadip Ghosh ◽  
Tom Yoon ◽  
Janos Fustos
Keyword(s):  
Business Process ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Continuous Training ◽  
Implementation Phase ◽  
Erp System ◽  
User Training ◽  
Training Resources

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.

Requirements Elicitation for Personalized ERP Systems

2010 ◽  
pp. 46-56
Keyword(s):  
Focus Group ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Success Factor ◽  
Erp Systems ◽  
User Input ◽  
Erp System ◽  
Critical Success ◽  
The Individual

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.

ERP and the Best-of-Breed Alternative

2011 ◽  
pp. 1420-1425
Author(s):  
Joseph Bradley
Keyword(s):  
Enterprise Resource Planning ◽  
Information Needs ◽  
Business Processes ◽  
Resource Planning ◽  
Software Systems ◽  
Erp Systems ◽  
Erp System ◽  
Business Press ◽  
Single Vendor ◽  
Erp Software

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.

Sign in / Sign up

Export Citation Format

Share Document