ERP Systems Management

This chapter investigates the aspects involved in ERP systems management to understand how such artifacts transform the role of Information Technology (IT) areas within the organizations. ERP systems are currently the main component of the information architecture of most large and medium sized companies and the management of these systems has become a critical part of IT teams’ every day. Initially is proposed a management model for ERP systems based upon a survey of the literature. Next is presented, based upon the model, the analysis of two ERP systems management cases of large sized Brazilian companies. At the end the cases are compared and important observed differences set up the conclusions of this chapter.

The e-ERP Transformation Matrix

A model of e-business transformation is developed for ERP enabled organisations, based on the findings of a longitudinal multiple case study analysis of SAP sites. The model is represented as a matrix along three stages of e-business growth. The theory embedded within the matrix recommends that successful e-business transformation with ERP systems occurs when B2B value propositions are realized through integration and differentiation of technologies, used to support new business models for delivering products and services online. In addition, the management focus evolves through employee self-service and empowerment towards extensive relationship building with e-alliances. The matrix can be used by ERP business managers to guide their strategies for organisational transformation but also highlights critical stages of change.

An Overview of SAP Technology

This chapter commences with a brief description of Enterprise Resource Planning (ERP), follows by a description of SAP, the largest enterprise software provider in the world. The timeline of activities since its inception in 1972 are summarized in a table. SAP’s flagship software program, the R/3 system, is portrayed in more detail. The capabilities of the R/3 system, the three-tier client/server technology it employs, its hardware and software, and several problems associated with its implementation and use are discussed. The two R/3 implementation tools – namely, the Accelerated SAP and the Ready to Run systems – are also described.

Organizational Knowledge Sharing in ERP Implementations

This study examines organizational knowledge sharing in enterprise resource planning (ERP) implementation. Knowledge sharing in ERP implementation is somewhat unique because ERP requires end users to have more divergent knowledge than is required in the use of traditional systems. Because of the length of time and commitment that ERP implementation requires, end users are also often more involved in ERP implementations than they are in more traditional ERP implementations. They must understand how their tasks fit into the overall process, and they must understand how their process fits with other organizational processes. Knowledge sharing among organizational members is one critical piece of ERP implementation, yet it is challenging to achieve. There is often a large gap in knowledge among ERP implementation personnel, and people do not easily share what they know. This study presents findings about organizational knowledge sharing during ERP implementation in three firms. Data were collected through interviews using a multi-site case study methodology. Findings are analyzed in an effort to provide a basis on which practitioners can more effectively facilitate knowledge sharing during ERP implementation.

ERP II & Change Management

Enterprise Resource Planning (ERP) systems have become an essential information systems infrastructure for large organisations. Organisations are now looking for ways to leverage their ERP investment by introducing new functionality; however, no matter how many implementations these companies have undertaken the same people issues still provide barriers. This research looks at the change management practices of Australian companies and identifies the main success factors and barriers associated with implementing change management strategies. The chapter presents the results of a survey of 35 major Australian organisations that have implemented an ERP system. Many of these organisations have long histories of ERP usage and multiple ERP implementations and upgrades. The main findings indicate that the respondents considered change management crucial to successful ERP implementations, yet their organisations did not perform change management very well. The main success factor to change management was provision of adequate resources, with the main barrier being lack of communication up and down the organisation.

A Successful ERP Implementation Plan

This chapter commences with a brief description of Enterprise Resource Planning (ERP), followed by a discussion of the benefits provided by an integrated ERP system. Next, the chapter describes several critical issues that managers must consider before making the final decision to integrate all the business functions in the organization. These issues are categorized under fundamental issues, people, the organizational change process, and the different approaches to implementing ERP. A well-defined plan is the first step to a successful ERP implementation. Therefore, the chapter concludes with a flow chart, depicting many of the activities that must be included in an ERP implementation plan.

B2E SAP Portals

The global ERP industry that blossomed in the 1990’s automating back office operations has made moves to introduce a “second wave” of functionality in ERP systems. In 2002/3 there was an expanded focus on mysap.com, small to medium enterprises and the expansion into “second wave” products. Companies around the world are exploring various Internet business models to evaluate their business potential and risk implications and a number of companies have realized the relatively quick gains with low associated risks that can be achieved through the business-to-employee (B2E) model. Employee Self Service (ESS) is a solution based on this model that enables employee’s access to the corporate human resource information system, and Australian companies are increasingly implementing this solution. This chapter presents the findings of a research project that looks at the changing nature of Human Resources (HR) in modern organisations and the development of an HR ESS portal in a major Australian organisation.

Principles, Foundations & Issues in Enterprise Systems

The objective of this chapter is to provide a detailed review of the core principles, foundations and issues of enterprise systems (ES). Since the late 1990s, enterprise systems have promised to seamlessly integrate information flowing through the organisation. They claim to lay redundant many of the integration problems associated with legacy systems. These promises are timely considering the current trends of globalization, virtual organisations, and constant business and technological changes, features of many strategy agendas. In an effort to better understand the nature of these packages this chapter reviews the ES evolutionary process, and generic software characteristics are also identified, followed by system benefits and limitations. A review of current approaches to ES implementation allows for a critique of system outcomes and identification of challenges facing today’s ES implementations. The chapter concludes with suggestions for overcoming some of these challenges.

SAP R/3 Implementation Approaches

The approach used to implement an ERP system is an important decision in its implementation project as it greatly affects the configuration of the system, the allocation of resources and the management of the project and its risks. It will also play a decisive role at all the stages of the ERP system’s life cycle. This chapter discusses the different ways of “going-live” of ERP systems: big-bang, small-bangs and implementation in phases, and describes their advantages and disadvantages. The chapter also presents results of an exploratory study made in 53 Brazilian companies, which implemented SAP R/3. Based on these results, influences of the companies’ characteristics and of the project on the selected method are discussed. The relation of the implementation approach and project time is also presented.

A Critical Success Factor's Relevance Model for SAP Implementation Projects

This chapter presents a unified model of Critical Success Factors (CSFs) for ERP implementation projects and the analysis of the relevance of these CSFs along the typical phases of a SAP implementation project. The Accelerated SAP implementation methodology (ASAP) is used as the SAP implementation reference method. Using Process Quality Management method, we derived a matrix of CSFs versus ASAP processes. Then, we evaluated the CSFs relevance along the five ASAP phases, specifically of those ones related with the organizational perspective. The main advantage of our approach is that we unified previous lists of CSFs for ERP implementation projects and we establish the CSFs relevance according to the implementation processes that should be made in a typical SAP implementation project. These findings will help managers to develop better strategies for supervising and controlling SAP or other similar ERP implementation projects.