Can Organizational Structure Influence ERP Success?

2015 ◽  
Vol 8 (1) ◽  
pp. 39-59 ◽  
Author(s):  
Ahad Zare Ravasan ◽  
Ali Nabavi ◽  
Taha Mansouri
Keyword(s):  
Organizational Structure ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Organizational Structures ◽  
Positive Influence ◽  
Erp Systems ◽  
Key Factors ◽  
Contributing Factors ◽  
Enterprise Resource Planning Systems

Implementing enterprise resource planning systems is a sophisticated, lengthy and costly process which tends to face serious failure. Though many contributing factors have been cited in the literature, the authors argue that the integrated nature of ERP systems, which generally requires an organization to adopt standardized business processes reflected in the software, is one of the key factors contributing to these failures. The integration and standardization imposed by most ERP systems may not be suitable for all types of organizational structures and it seems that some characteristics in organizational structures affect the likelihood of implementation success or failure. Based on the theory of organizational structure, this paper analyzes how the traditional variables which define a firm's organizational structure such as formalization, complexity, and centralization along with two variables of size and CIO position in an organization influence ERP projects success. The paper tests five hypotheses using a sample of 203 Iranian cases. The results show that all of the research variables on organizational structure exert a positive influence on ERP success which confirms all the research hypotheses.

Moving to Midsize

2010 ◽  
Vol 132 (12) ◽  
pp. 48-49 ◽  
Author(s):  
Jean Thilmany
Keyword(s):  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Product Lifecycle Management ◽  
Erp Systems ◽  
Erp System ◽  
Manufacturing Operations ◽  
Transition Costs ◽  
Enterprise Resource Planning Systems ◽  
Lifecycle Management

This article elaborates the benefits of an enterprise resource planning (ERP) system for small-to-midsize businesses. A large number of small-to-midsize engineering and manufacturing operations are now bringing enterprise resource planning systems into their operations. ERP software is distinct from a product lifecycle management application, which is where engineers store information about the product they’ve defined. ERP systems link design and manufacturing with business processes such as new orders, purchasing, credit, accounting, supply chain management, and planning. They stretch from business headquarters across production facilities, warehouses, and sales offices. By linking these operations, ERP helps executives understand and forecast all the factors—from sales and purchases to asset utilization and hiring—that might affect profits. An ERP system offers control over all areas of the business in one centralized place. Several developments are now helping smaller companies make the transition: costs for ERP systems are coming down, implementation is becoming easier, and systems are targeted to smaller players.

Information System Assurance for Enterprise Resource Planning Systems: Unique Risk Considerations

2002 ◽  
Vol 16 (s-1) ◽  
pp. 99-113 ◽  
Author(s):  
Sally Wright ◽  
Arnold M. Wright
Keyword(s):  
Enterprise Resource Planning ◽  
Relational Databases ◽  
Business Processes ◽  
Implementation Process ◽  
Resource Planning ◽  
Structured Interview ◽  
Process Reengineering ◽  
Erp Systems ◽  
Client Experiences ◽  
Implementation Problems

Enterprise Resource Planning (ERP) systems inherently present unique risks due to tightly linked interdependencies of business processes, relational databases, and process reengineering. Knowledge of such risks is important in planning and conducting assurance engagements of the reliability of these complex computer systems. Yet, there is little empirical evidence on this issue. To examine this topic, a semi-structured interview study was conducted with 30 experienced information systems auditors (from 3 of the Big 5 firms) who specialize in assessing risks for ERP systems. This approach allowed us to obtain detailed information about participants' views and client experiences. The results indicate that the implementation process of ERP systems has an important impact on system reliability. Further, interviewees identified a number of common implementation problems (e.g., improperly trained personnel and inadequate process reengineering efforts) that result in heightened risks. Interviewees also reported that ongoing risks differ across applications and across vendor packages. Finally, in providing assurance on ERP systems participants overwhelmingly indicate a focus on testing the process rather than system output.

Measuring Utilization of ERP Systems Usage in SMEs

2013 ◽  
pp. 22-34
Author(s):  
Hedman Jonas ◽  
Johansson Björn
Keyword(s):  
Enterprise Resource Planning ◽  
Model Building ◽  
Critical Mass ◽  
Resource Planning ◽  
Erp Systems ◽  
Planning Systems ◽  
Four Dimensions ◽  
Factors Influencing ◽  
Enterprise Resource Planning Systems ◽  
The Many

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.

The Core Critical Success Factors in Implementation of Enterprise Resource Planning Systems

2012 ◽  
pp. 86-113 ◽  
Author(s):  
Payam Hanafizadeh ◽  
Roya Gholami ◽  
Shabnam Dadbin ◽  
Nicholas Standage
Keyword(s):  
Conceptual Model ◽  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
Project Managers ◽  
Entropy Method ◽  
Erp Systems ◽  
Critical Success ◽  
Enterprise Resource Planning Systems

The Implementation of Enterprise Resource Planning (ERP) systems require huge investments while ineffective implementations of such projects are commonly observed. A considerable number of these projects have been reported to fail or take longer than it was initially planned, while previous studies show that the aim of rapid implementation of such projects has not been successful and the failure of the fundamental goals in these projects have imposed huge amounts of costs on investors. Some of the major consequences are the reduction in demand for such products and the introduction of further skepticism to the managers and investors of ERP systems. In this regard, it is important to understand the factors determining success or failure of ERP implementation. The aim of this paper is to study the critical success factors (CSFs) in implementing ERP systems and to develop a conceptual model which can serve as a basis for ERP project managers. These critical success factors that are called “core critical success factors” are extracted from 62 published papers using the content analysis and the entropy method. The proposed conceptual model has been verified in the context of five multinational companies.

Evaluating the Usability Maturity of Enterprise Resource Planning Systems

2020 ◽  
pp. 171-199
Author(s):  
Kelvin Kabeti Omieno
Keyword(s):  
Software Quality ◽  
Enterprise Resource Planning ◽  
Resource Planning ◽  
User Performance ◽  
Erp Systems ◽  
Quality Model ◽  
Quality Models ◽  
Erp System ◽  
Enterprise Resource Planning Systems ◽  
Software Quality Models

The enterprise resource planning (ERP) system is a complex and comprehensive software that integrates various enterprise functions and resources. Although ERP systems have been depicted as a solution in many organizations, there are many negative reports on ERP success, benefits, and effect on user performance. Previous research noted that there is a lack of knowledge and awareness of ERP systems and their overall value to ERP organizations. ERP systems have been widely studied during the past decade; yet they often fail to deliver the intended benefits originally expected. One notable reason for their failures is the lack of understanding in user requirements. There are many studies conducted to propose software quality models with their quality characteristics. However, there is currently no dedicated software quality model that can describe usability maturity and involve new features of ERP systems. This chapter proposes a framework for evaluating the usability maturity as a quality attribute of ERP systems.

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).

Federated Enterprise Resource Planning Systems

2007 ◽  
pp. 290-305 ◽  
Author(s):  
N. Brehm ◽  
D. Lübke ◽  
J. Gómez
Keyword(s):  
Web Services ◽  
Enterprise Resource Planning ◽  
System Development ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Business Applications ◽  
Enterprise Resource Planning Systems ◽  
Software Product ◽  
Standard Software

Enterprise resource planning (ERP) systems consist of many software components, which provide specific functionality. As ERP systems become more complex, the financial expenditures that are associated with the application of such systems dramatically increase. Furthermore, ERP system development of nowadays is product-oriented and coordinated by only one instance at any one time. Consequently, each product has a separate data model, which is the basis for the integration of various types of business applications. Based on this fact, the selection of the covered functional enterprise sectors as well as the implemented functions is controlled by the respective vendor, too. Thus, enhancements and modifications of the standard software product are incumbent upon the software vendors. A cross-vendor standardization of data models for ERP systems and the establishment of unified architectural model, however, would change this situation. The new idea is to develop a novel ERP system architecture, which facilitates an overall reusability of individual business components (BC) through a shared and non-monolithic architecture based on Web services. The presented approach uses Web services to wrap up ERP components that are provided within a distributed system, which appears as an ERP community and serves as a vendor-independent platform.

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.

ERP Adoption in Indian Organizations

2005 ◽  
pp. 1102-1107
Author(s):  
Monideepa Tarafdar
Keyword(s):  
Inventory Management ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Social Contexts ◽  
Erp Systems ◽  
It Use ◽  
Manufacturing Resource Planning ◽  
Wide Availability ◽  
Erp Software

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.

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