Implementing Best of Breed ERP Systems

2010 ◽  
pp. 292-302
Author(s):  
Joseph Bradley
Keyword(s):  
Competitive Advantage ◽  
Business Processes ◽  
Business Practices ◽  
Entire System ◽  
Erp Systems ◽  
Erp Implementation ◽  
Packaged Software ◽  
Single Vendor ◽  
Number Of Firms

ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow this practice, a significant number of firms employ an alternate strategy of “best of breed” ERP. This strategy involves selecting software that best matches the current or desired business practices of the company from a variety of vendors. This strategy reduces the need for the firm to customize the software or to significantly reengineer its business practices. Best of Breed offers firms the opportunity to maintain or create competitive advantage based on unique business processes. “Vanilla” ERP implementations may result in competitors all adopting the same business processes leaving no firm with an advantage.

Implementing Best of Breed ERP Systems

2009 ◽  
pp. 233-244 ◽  
Author(s):  
Joseph Bradley
Keyword(s):  
Competitive Advantage ◽  
Business Processes ◽  
Business Practices ◽  
Entire System ◽  
Erp Systems ◽  
Erp Implementation ◽  
Packaged Software ◽  
Single Vendor ◽  
Number Of Firms

ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow this practice, a significant number of firms employ an alternate strategy of “best of breed” ERP. This strategy involves selecting software that best matches the current or desired business practices of the company from a variety of vendors. This strategy reduces the need for the firm to customize the software or to significantly reengineer its business practices. Best of Breed offers firms the opportunity to maintain or create competitive advantage based on unique business processes. “Vanilla” ERP implementations may result in competitors all adopting the same business processes leaving no firm with an advantage.

From On-Premise ERP to Cloud ERP

2019 ◽  
pp. 816-826 ◽  
Author(s):  
Karim Mezghani
Keyword(s):  
Best Practices ◽  
Business Processes ◽  
Cloud Environment ◽  
Erp Systems ◽  
Strategic Choices ◽  
Erp Implementation ◽  
It Alignment ◽  
Business It Alignment ◽  
Almost All ◽  
The Way

One of the concerns linked to ERP implementation is alignment. Indeed, ERP systems affect almost all business processes and even some strategic choices of a firm. That is why many studies focus on alignment concerns when studying ERP implementation. Nevertheless, firms are more and more interested in switching toward cloud ERP. This involves great challenges for business-IT alignment of an enterprise. Also, with cloud ERP, data and applications are provider-hosted. So, the way ERP is managed may be redefined and achieving alignment might be more challenging. Thus, this chapter aims to expose the major challenges and issues linked to ERP systems alignment. Some tendencies and best practices are also proposed for firms to overcome the alignment challenges, mainly in a cloud environment.

Implementing ERP Systems in Multinational Projects

2011 ◽  
pp. 252-288
Author(s):  
Heinz D. Knoell ◽  
Lukas W.H. Kühl ◽  
Roland W.A. Kühl ◽  
Robert Moreton
Keyword(s):  
Success Factors ◽  
Business Processes ◽  
The United States ◽  
Erp Systems ◽  
Erp Implementation ◽  
Real Effects ◽  
The Third ◽  
Lifecycle Model ◽  
Standard Software ◽  
Oriented Approach

In this chapter we present the factors for the success of ERP implementation projects. In the first section, we present the outcome of three surveys on the process and success factors for ERP projects. The first survey was undertaken in 2003 in Germany, the second in 2004 in the United States, and the third in 2006 in Turkey. The results are discussed in light of Hofstede’s model of cultural factors. In the second section we evaluate common ERP lifecycle models. In spite of the great variety of potential advantages, it is also necessary to illuminate the real effects of standard ERP software in practice. Recent studies have revealed that 81% of German companies interviewed using SAP do not fully exploit the software’s ability to optimize business processes, though 61% stated that SAP offers very good process optimization opportunities (Ploenzke, 2000). Therefore we evaluated popular lifecycle models with respect to their suitability to implement standard software in a process-driven way (Kuehl & Knoell, 2002). In the third section we present a semi-process-oriented approach lifecycle model for the implementation and release changeover of ERP systems. This lifecycle model was developed from the authors’ experience in practice, and its practical relevance was evaluated in real-world projects. This approach is also assessed in light of the criteria presented in the second section.

The Mediating Role of Absorptive Capacity in Knowledge Transfer

2013 ◽  
Vol 9 (2) ◽  
pp. 1-19 ◽  
Author(s):  
Femi Adisa ◽  
Jeremy Rose
Keyword(s):  
Knowledge Transfer ◽  
Absorptive Capacity ◽  
Business Processes ◽  
Shared Understanding ◽  
Business Practices ◽  
Erp Implementation ◽  
Mediating Role ◽  
Multiple Case

Knowledge transfer between consultants and organizational users influences the outcomes of an Enterprise Resource System (ERP) implementation. Configuration and implementation tasks are dependent on generating some level of shared understanding of both business practices and technology. These problems become acute in implementations in small and medium sized enterprises (SMEs). SMEs often operate with non-standard business processes, making an effective interchange of process knowledge between consultants and end-users crucial. Using a multiple case study method and content analysis, the authors investigate the mediating role of absorptive capacity in knowledge transfer in SMEs ERP implementations. They present exploratory case studies from 3 Nigerian companies with varying outcomes, and hypothesize that knowledge transfer is complicated by acute information asymmetry, absence of pre-existing related knowledge and consequent difficulties in developing a shared understanding, and by a tendency to operate with lone consultants and lone organizational representatives.

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.

scholarly journals Risk Factors When Implementing ERP Systems in Small Companies

Information ◽  
2021 ◽  
Vol 12 (11) ◽  
pp. 478
Author(s):  
Ann Svensson ◽  
Alexander Thoss
Keyword(s):  
Risk Factors ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Small Enterprises ◽  
Small Companies ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Implementation Processes

Implementation of enterprise resource planning (ERP) systems often aims to improve the companies’ processes in order to gain competitive advantage on the market. Especially, small companies need to integrate systems with suppliers and customers; hence, ERP systems often become a requirement. ERP system implementation processes in small enterprises contain several risk factors. Research has concluded that ERP implementation projects fail to a relatively high degree. Small companies are found to be constrained by limited resources, limited IS (information systems) knowledge and lack of IT expertise in ERP implementation. There are relatively few empirical research studies on implementing ERP systems in small enterprises and there is a large gap in research that could guide managers of small companies. This paper is based on a case study of three small enterprises that are planning to implement ERP systems that support their business processes. The aim of the paper is to identify the risk factors that can arise when implementing ERP systems in small enterprises. The analysis shows that an ERP system is a good solution to avoid using many different, separate systems in parallel. However, the study shows that it is challenging to integrate all systems used by suppliers and customers. An ERP system can include all information in one system and all information can also easily be accessed within that system. However, the implementation could be a demanding process as it requires engagement from all involved people, especially the managers of the companies.

An Exploratory Analysis for ERPS Value Creation

2010 ◽  
pp. 253-269
Author(s):  
Carmen de Pablos Heredero ◽  
Mónica de Pablos Heredero
Keyword(s):  
Business Model ◽  
Value Creation ◽  
Success Factors ◽  
Exploratory Analysis ◽  
Change Processes ◽  
Erp Systems ◽  
Erp Implementation ◽  
Critical Success ◽  
Realistic View ◽  
Number Of Firms

A great number of firms worldwide have invested a lot in the application of ERP systems to modify their business model and be able to offer better processes. When firms implement ERP systems they try to integrate and optimize their processes in what they consider their key areas. The present chapter tries to offer a view centered on the main reasons why Spanish firms have implemented ERP systems in the last ten years and what have been their main critical success factors and their main failure factors too. For that, the authors apply a model that they have previously developed based in 5 main groups of variables. The authors ask firms about their perceptions and final results provided by the variables affecting their change processes in the ERP implementation. The authors try to offer a realistic view of what has been taking place in the Spanish market.

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 ERP Implementation Case Study from a Knowledge Transfer Perspective

2000 ◽  
Vol 15 (4) ◽  
pp. 281-288 ◽  
Author(s):  
Zoonky Lee ◽  
Jinyoul Lee
Keyword(s):  
Knowledge Transfer ◽  
Competitive Advantage ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Process Analysis ◽  
Resource Planning ◽  
Erp Implementation ◽  
Factors Affecting ◽  
Early Implementation ◽  
Business Knowledge

An enterprise resource planning (ERP) application is an enterprise-wide package that tightly integrates all necessary business functions into a single system with a shared database. An ERP implementation often entails transferring the business knowledge incorporated in the basic architecture of the software package into the adopting organization. This article proposes a new approach to analysing ERP implementations from a knowledge transfer perspective. It also contributes to a better understanding of competitive advantage based on process knowledge when standardized business processes are implemented by an organization. The article begins by identifying the types of knowledge transferred during an ERP implementation and the factors affecting this transfer. It then investigates how conflicts between the business knowledge transferred from the ERP package and the existing organizational knowledge are resolved. During our investigation, we used in-depth interviews, process analysis and documentation analysis in order to analyse an early implementation stage of ERP. The results indicated that the business processes which are incorporated in an ERP package are transferred into an organization along with the business rules inherent in the processes due to process automation, the limited flexibility of such packages and the cross-functional nature of an ERP package. The results also suggested that an organization's adaptive capability concerning role and responsibility redistribution, the development of new types of required knowledge and the introduction of a different knowledge structure influence an organization's ability to internalize these standardized processes into business routines that provide a competitive advantage

Sign in / Sign up

Export Citation Format

Share Document