A Framework for Assessing ERP Systems' Functionality for the SMEs in Australia

Anticipating the use of ERP systems among small to medium enterprises (SMEs) to be the future area of growth, ERP vendors such as SAP, Oracle, PeopleSoft, J.D. Edwards and Bann are introducing ERP software that appeals to the market segment of the SMEs. Introduction of the ERP systems for SMEs includes compact packages, flexible pricing policies, new implementation methodologies, and more specialized functionalities. The strengths-weaknesses-opportunities-threats (SWOT) framework of the ERP software offered by the aforementioned vendors for the SMEs requires in-depth analysis based on real field data. The aim of this study is to identify the strengths, weaknesses, opportunities, and threats of ERP systems offered by the five leading vendors for the SMEs in Australia. Multiple case study design approach is used here for collecting the primary data from the ERP vendors. A SWOT framework is developed to study the functionality of the ERP systems offered by these vendors. This framework may guide the managers of SMEs in selecting and implementing ERP systems for their organizations.

An Object-Oriented Awareness-Based Methodology for ERP

It is now believed that success of ERP systems is largely dependent on not only the successful evaluation, selection, implementation and post-implementation of ERP systems, but also on integrating it with the organizational business processes. On the other hand, nearly all business processes are collaborative in the sense that multiple human agents or actors interact with one another for achieving one or more process goals. As a result, one can claim that one major factor in successful implementation of the ERP systems is development of appropriate conceptual models of the ERP process from various perspectives. In this chapter the writer, being a member of the CSCW (computer supported cooperative work) research community, introduces a conceptual model for ERP which has an emphasis on the collaborative nature of ERP process that explicitly addresses the “awareness” and “knowledge-sharing” issues within the ERP process. This conceptual model demonstrates collaboration requirements of the actors behind individual business processes as well as the relationships among these business processes. This chapter is intended to introduce to the ERP community a relevant piece of work in conceptual modelling from the perspective of CSCW with the aim of attracting research collaborators for further investigation in these fields.

The Impact of Enterprise Resource Planning Systems on Organizational Effectiveness

Enterprise resource planning (ERP) systems have an organizational impact and are in most cases implemented to improve organizational effectiveness. Shortcomings in current research make it difficult to conclude how an organization may be affected. This paper presents an artifact evaluation of the functionality and perceived benefits of ERP systems. The evaluation is based on the competing values model. The evaluation shows that ERP systems support effectiveness criteria (such as control and productivity) related to internal process and rational goal models. The evaluation also points out weaknesses in ERP systems and especially in areas related to human relations and open systems models. The result of the evaluation is used to discuss the impact of ERP systems on organizations and is presented as a series of hypotheses.

ERP Systems in Universities

This chapter outlines the significance of enterprise resource planning (ERP) systems and analyses the rationale used for their adoption. This study is structured around a theory of the motivations for investment in information technology (IT) to support core business operations. The data used for the study are documents published electronically on the Internet by universities. A content analysis was applied to this data. The chapter employs frequent use of quotes from the sources selected to assist the reader to understand the context and to verify the analysis. The findings are that the main reasons for adopting ERP are the modernization of systems, greater usability and flexibility, integration of data and systems, business process reengineering, an increase in the degree of electronic data interchange including the provision of Web-based interfaces to application systems, reduced maintenance and risk avoidance.

The Myth of Integration

This research examines the implementation process of an enterprise resource planning (ERP) system and shows that implementation cannot be viewed solely in instrumental terms–that is, organizations do not simply select systems based on information requirements so that proper “fit” can be achieved. Instead, this research suggests that the activities of selecting and implementing a new ERP become the medium for (re-)constructing or (re-)constituting the organization’s values. Theorists have described such activities as a “mythmaking” process. A case study of an implementation at a large nonprofit organization is presented to demonstrate how myth-making served to construct an ERP system as an “integrated” system and at the same time served to elaborate existing organizational values. The myth functioned as a vehicle of consensual organizational reality, serving to align the acquisition of an ERP system with the organizational values, thereby garnering widespread support for a complex, expensive and relatively unknown technology.

Assessing Enterprise Resource Planning (ERP) Adoption in the Philippines

The Philippines has already embraced today’s fast-paced global economy. The worldwide advent of e-commerce has driven the Philippine business community to deal with changes in the way business is conducted–extending its reach, working to provide better services for customers, working more closely with suppliers and partners, and tapping new markets. Developments characterized by the new global economy require a shift in the management paradigm of enterprises which gives premium on competitiveness, multifunctionality, and flexibility. This requires managing the technological factors of the enterprise (managing technology and managing with technology) and managing the enterprise for controlled change and stability (Khalil, 2000).

The Evolution of ERP Systems

ERP systems are now ubiquitous in large businesses and the current move by vendors is to repackage them for small to medium enterprises (SMEs). This migration has many consequences that have to be addressed through understanding the history and evolution of ERP systems and their current architectures. The advantages and disadvantages of the ERP systems will impact their penetration in this new market. The market position and general strategy of the major systems providers in preparation for this push are described. The chapter concludes that the growth and success of ERP adoption and development in the new millennium will depend on the legacy ERP system’s capability of extending to Customer Relationship Management (CRM), Supply Chain Management (SCM) and other extended modules, and integration with the Internet-enabled applications.

A Framework for the Selection of ERP Packages for Small to Medium and Large Organizations

In this chapter we focus on the early stage of evaluating and selecting an ERP system prior to implementation. Only a part of decision making for ERP systems can be handled by a definite or accepted procedure such as standard investment calculations. There are many other intangible decision-making criteria needing to be judged and evaluated by the decision makers. There is no agreed-upon and formal procedure for this important task (Hecht 1997; Laudon & Laudon, 1998). Therefore it seems necessary to investigate decision-making practices to increase the understanding of this complex and important task. We also focus on the decision-making situation faced by small and medium-sized enterprises (SMEs). This is of particular importance because SMEs are more and more experiencing the need for integration, especially for interorganizational integration, and expecting ERP software to fulfill these needs. The availability of relatively inexpensive hardware is fostering this situation (Gable & Stewart, 1999). In general, decision making in SMEs features much greater constraints on the ability to gather information in order to reduce uncertainty about their investment (Cobham, 2000). Considering ERP software decisions with its complex and far-reaching implications, poor decision making by SMEs can result in disastrous situations.

Implementation Management of an E-Commerce-Enabled Enterprise Information System

This chapter presents a case study of an overview of the efforts of Texas Instrument’s (TI’s) internal and external ERP implementation, with a focus on linking its ERP system in a global e-commerce setting. This linkage is especially important since it had been stated in TI’s strategic plan as an objective of this project to provide visibility of the ERP system to external constituents via Web linkages along with the objective of standardizing internal processes and important information technology systems to support market needs. Thus, its ERP system is central to managing its supply chain and B2B e-commerce linkages from both a customer and supplier perspective. Issues faced by TI are clearly outlined with future questions also posed in the final section.

Using Cost Benefit Analysis for Enterprise Resource Planning Project Evaluation

The goal of this chapter is to demonstrate how cost benefit analysis can be applied to large-scale ERP projects and that these methods can incorporate the intangible benefits, e.g., user satisfaction. Detailed information on the business case utilized by a large computer manufacturer in their decision to implement the SAP system R/3 is presented. We illustrate how this organization utilized techniques to include intangibles in the implementation project’s cost benefit analysis. The chapter concludes with a discussion on the state of valuing ERP projects and questions to be answered in the future.