...intricate and convoluted amalgamation of technological, organizational, and business enterprises. It needs understanding of a process, an explicit association of processes, its setting, contest, and IT. ERP systems have been often castigated for being rigid, overly complex, huge and therefore not easy to implement and control. Because of the integrated and ubiquitous nature, ERP requires adopters, implementers and users to define a common set of business rules, data standards, processes and procedures that span the entire organization (Alvarez et al. 2002, 10). Troubles in implementation have been portrayed as resembling “the prisoner escaping from an island prison” (Ross and Vitale 2000). Popularity and demand for ERP systems from organizations is increasing, but only this wish single-handedly is not sufficient, and it is evident from research that several key factors must be considered for the success of any ERP system. Petter, DeLone, and McLean (2008), describe ERP system as a tool that manages procedures and resources; therefore, it is imperative for organizations to have this tool to facilitate the...
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...ERP is the acronym of Enterprise Resource Planning. Enterprise Resource Planning (ERP) is an enterprise-wide information system that integrates and controls all the business processes in the entire organization (Nah and Lau 2001). ERP utilizes software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. “ERP system is a business management system that comprises integrated sets of comprehensive software, which can be used, when successfully implemented, to manage and integrate all the business functions within an organization. These sets usually include a set of mature business applications and tools for financial and cost accounting, sales and distribution, materials management, human resource, production planning and computer integrated manufacturing, supply chain, and customer information” (Boykin, 2001; Chen, 2001). “These packages have the ability to facilitate the flow of information between all supply chain processes (internal and external) in an organization” (Al-Mashari and Zairi, 2000). Furthermore, an ERP system can be used as a tool to help improve the performance level of a...
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...What is ERP? ERP is the acronym of Enterprise Resource Planning. ERP utilizes ERP software applications to improve the performance of organizations' resource planning, management control and operational control. ERP software is multi-module application software that integrates activities across functional departments, from product planning, parts purchasing, inventory control, and product distribution, to order tracking. ERP software may include application modules for the finance, accounting and human resources aspects of a business. Enterprise resource planning (ERP) refers to a computer information system that integrates all the business activities and process throughout an entire organization. The objective of ERP is to provide seamless, real-time information to all employees throughout the enterprise. Companies commonly use ERP systems to communicate the progress of orders and projects throughout the supply chain, and to track the costs and availability of value-added services. ERP Definition - A Systems Perspective A sound definition should several purposes: 1. It answers the question of "what is ...?” 2. It provides a base for defining more detailed concepts in the field - ERP Software, ERP systems, ERP implementation etc. 3. It provides a common ground for comparison with related concepts - CRM, SCM etc. 4. It helps answer the basic questions in the field -benefits of ERP, the causes of ERP failure etc. The Goal of an ERP System - The goal of ERP is to improve...
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...resource planning is to focus on the importance of information and to focus on the task at hand. ERP is a strategy in which the information that is gathered becomes a competitive advantage for an organization. Implementation of ERP systems is one of the major tasks involved in running a successful organization. Implementation of these systems has been a critical problem for many businesses worldwide. It can be very difficult to implement ERP systems into an organization as there are many known processes to do so. And if the process is not handled carefully, it can cause massive disaster. This can place delays on the decision making process thus losing a competitive advantage over other organizations. The article, “Risks and Controls in the Implementation of ERP Systems” discusses the risks and controls used in ERP implementations. The objective is to understand the ways in which businesses can decrease the business risks involved. If these potential risks can be controlled and minimized in the first instance that they are discovered, a scene can be set for the successful implementation of an ERP system. The main risks associated with a successful implementation of an ERP system were application complexity, lack of user experience, and lack of user support. These were all risks that impacted greatly on the organization. This meant that all of these problems contributed to the lack of customer satisfaction. The article discusses the importance of comprehending consumer needs...
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...An Enterprise Resource Planning (ERP) system is a highly complex system and is usually associated with high costs. The implementation is a long process and may take years to complete, furthermore, the process can be delayed and disrupted by inadequate planning and execution. It is not surprising that the biggest issue in ERP is the failure of a successful implementation. Hence, a company has to understand and consider the success factors of a successful implementation before deciding on implementing an ERP system. Top management commitment The support from top management is critical. An active and committed committee who are directly involved in the implementation process would remind their employees of the importance of the implementation of the ERP system, as compared to if it were delegated to other departments. The top management must also be willing to allocate resources for the implementation of the ERP system. The presence of strong leadership in implementing the system would aid in the employees’ acceptability of the new system in the future. Users’ acceptance will be discussed in the next point. The involvement of top management could be in the form of being in a steering committee as well. A steering committee is responsible for the organization’s operating policies and procedures. A good steering committee would try to solve all problems faced in the process of ERP implementation instead of diverting it to other departments. If this were the case, the problems will...
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...“Discuss the contribution of Actor-Network Theory to our understanding of management accounting and control in organisations that have adopted ERPS technologies.” Over the past decade, management accounting has seen an extraordinary rise in technology driven innovations, whereby Hyvonen (2008) explains how this has contributed to the emergence of virtual organisations. The power of ICT plays a pivotal role in many organisations, through providing a basis for managing efficient operations and formulating corporate strategy. Moreover, Bhimani et al (2008) explains how ICT provides the opportunity to alleviate the problems associated with information flows in organisations with fragmented information systems. In practice, Hyvonen (2008) notes that the centralised control of large organisations requires ICT systems that make the periphery visible to the centre. The enterprise wide resource planning system (ERP System) is an example of an ICT system which coordinates all the resources, activities and corporate information of an organisation into one central database that collects data and feeds it into multiple applications that support all business activities of an organisation. Furthermore, it has been suggested that such systems facilitate unprecedented levels of organisational integration (Dechow and Mouritsen, 2005) and thus ERP systems have provided a new platform for organisations to thrive and develop a competitive advantage. Actor-Network Theory is a constructivist and...
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...REPORT: PROPOSED ADOPTION OF ERP SYSTEM FOR ALL DIVISIONS I would like to propose an upgrade of our in-house internal Material Requirement Planning (MRP) mostly used by the Engineers to an ERP system which would encompass sales, account payables, finance, supply chain, invoicing and receiving. Our current system works well internally, however, there are several issues that the MRP cannot address. The MRP doesn’t disseminate information to procurement, sales and finance. Also it doesn’t provide information on inventory levels and late deliveries. It’s therefore difficult to make the necessary changes, which would, commensurate with the rapid changing business environment. In addition, the MRP is manufacturing driven and it is only of advantage to the manufacturing divisions. Even in those divisions, communication and the require knowledge for better forecasting and financial planning are lacking. The ERP would improve the entire efficiency of the company’s processes. First and foremost, the ERP would enable all the diverse divisions to work as a single unit, provide a key knowledge development and ensure the seamless workflow of processes. As of now, access to information and data retrieval is difficult and cumbersome to analyze. This reduces the production efficiency of employees. With the ERP system all employees would have access to same information and/or data at the same time. Also the ERP has many modules such as inventory, order management, sales, human resource, procurement...
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...separated into different components or areas of expertise. These are the processes that happen between the customer and the actual supplier. Until recently these different areas worked as silo operations. They are the division of enterprises into functional areas such that different activities occur in different parts of the enterprises. They are referenced to as stovepipes, for the fact the information stays with each enterprise (Dunn). The information is only allowed to travel upwards and a lack of communication exists between enterprises. This communication barrier slows down the business process from customers to suppliers. The attempt to break through this barrier has come in the form of Enterprise Resource Planning or better known as ERP Systems. The APICS Dictionary refers to Enterprise Resource...
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...implementing an ERP System in a University Environment. Purpose of the Research Proposal: Submitted for the requirements of the admission in Doctoral Program. 1. Introduction The proposed research project will study involves the factors that influence an implementation of an enterprise-wide information system in a large organisation. More specifically, it will examine what the critical success factors (CSF) are for implementing an Enterprise Resource Planning (ERP) system in a university environment. This Research proposal introduces the research project that will be undertaken, giving an outline of why such research needs to be done, placing the research in context and demonstrating its importance. The research questions are then outlined. 1.1. Research Topic Introduction As discussed above, this research project involves the ERP phenomena and specifically ‘what factors can be seen as critical when implementing an ERP system in a university environment’. Issues regarding the software vendor providing the ERP system are outside the scope of this research project, as is the actual measurement of the critical success factors or the dependency relationship between the factors that will be identified. A theoretical framework (TF) will be developed in order to aid the research process. The framework will list broad factors derived from current literature and they will be examined in this project with regard to an ERP implementation...
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...INTERNATIONAL JOURNAL OF COMPUTERS Issue 4, Volume 6, 2012 Strategic and tactical success factors in ERP system implementation K. Curko1, D. Stepanic2, M. Varga3 Abstract— In order to successfully implement an ERP system it is necessary to properly balance critical success factors. By researching what the critical success factors in ERP implementation are, why they are critical, and to what extent they are relevant to users, consultants and suppliers, this paper seeks to identify critical success factors in ERP implementation and to understand the impact of each factor on the success of ERP system introduction. This paper lists ten critical success factors (CSF) providing two points of view: strategic and tactical. These are: top management support, a business plan and vision, top management support, change management program, project management, implementation strategies, project team, business process modeling and minimal customizations, monitoring and performance evaluation, software development, testing and troubleshooting, legacy systems. Keywords— ERP implementation, critical success factors, IT project, management I. INTRODUCTION Complex IT projects, such as developing and especially implementing ERP systems often fail. Many studies indicate a small success rate in terms of exceeding the time limit, budget and poor functionality of the new system. Successful ERP projects bring great benefits to the company, but can also be devastating to organizations...
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...On the Formalisation of ERP Systems Procurement Xavier Franch Joan A. Pastor Universitat Polictècnica de Catalunya Universitat Polictècnica de Catalunya c/Jordi Girona 1-3 c/Jordi Girona 1-3 UPC Campus Nord, C6 UPC Campus Nord, C6 Barcelona, Catalunya E-08034 Spain Barcelona, Catalunya E-08034 Spain +34 3 401 69 65 +34 3 401 70 21 franch@lsi.upc.es pastor@lsi.upc.es ABSTRACT In this position paper we present and defend a set of statements regarding ERP procurement. The statements highlight the importance of ERP procurement processes and propose that they should be as well-defined and systematic as possible. For this reason, we advocate the use of formal notations for structuring the criteria used during ERP selection, for describing ERPs with respect to these criteria and in general to help the whole selection process, including tool support. Finally, we point out several open issues that need to be considered. Most of the opinions expressed here arise from a real industrial ERP procurement experience. Keywords ERP procurement, ERP acquisition. 1 ERP PROCUREMENT MOTIVATION A clear trend in both private and public companies with regard to their current options for software-based management Information Systems (IS) is the fast and wide proliferation of large packaged ready-made Enterprise Resource Planning (ERP) systems, surely among the most extreme instances of current Customizable Off-The-Shelf (COTS) software packages. We present in this and the ...
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...SAP What is that? What is that? Many people may be bewildered after watching one of the company's limited television commercials - the same question jokingly asked in the ING commercials a few years ago. And the acronym SAP, should not be confused for "soon as possible" or the white liquid that sips from the back of a tree, either. SAP stands for Systems, Applications, and Products in Data Processing. In this highly advanced technological era, it is almost unimaginable for companies not to implement systems such as SAP’s so as to boost their Information Systems. Since the global community has 'gotten much smaller', than say fifty years ago, it is imperative that companies design their Information Systems with integrated features so as to operate effectively between countries. The implementation of SAP technology is no longer an advantage but a competitive parity and its relevance toward the field of Management Information Systems is paramount. "Get in the game or fall off the wayside." The story and development of this giant of a company is remarkable. SAP grew from a very modest five member staff at the founding of the company in 1972 to approximately 53,000 employees 38 years later (sap.com ). That is like hiring an average of 1432 employees per year for the last 37 years; a significant contribution by many standards. The company's success and relevance to the world of Information Systems can be attributed to its founders, management, and employees realizing SAP's mission...
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...Cinthyia Woods American Intercontinental University March 11, 2012 IP 5 The purpose of this paper is to choose an organization who delivers goods and services globally. Furthermore provide a background of the organization and describe the six components of the organization supply chain. In addition I will examine the potential problems related to each of the components and explain the approach of the organization for solving the problem. It is intended as a review of the company contribution to local and global air pollution, and the strategic and tactical options available for combating the problem in an environment of sustainable development and economic growth. Therefore the examination and assesses of the underlying causes and surveys the principal strategic approaches applied to solving the problem, and examines the various mechanisms of intervention available Abstract This paper will explore how UPS is a worldwide delivery and shipping company that is considered one of the world's largest shipping companies. Two of the most recognizable characteristics of UPS are the brown trucks and uniforms that the employees use. The company utilizes air, water, and ground transportation system to deliver packages across the world. UPS was founded in 1907 as a messenger company in the United States; UPS has grown into a multi-billion-dollar corporation by clearly focusing on the goal of enabling commerce around the globe. 1913- The company began using consolidated delivery...
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...Journal of Digital Accounting Research Vol. 1, No. 1, pp. 47-68 ISSN: 1577-8517 Risks and Controls in the Implementation of ERP Systems Severin V. Grabski. Michigan State University, U.S.A. grabski@pilot.msu.edu Stewart A. Leech. The University of Melbourne, Australia saleech@unimelb.edu.au Bai Lu. Colonial Mutual Group, Australia blu@colonial.com.au Abstract. The implementation of ERP systems has been problematic for many organizations. Given the many reports of substantial failures, the implementation of packaged ERP software and associated changes in business processes has proved not to be an easy task. As many organizations have discovered, the implementation of ERP systems can be a monumental disaster unless the process is handled carefully. The aim of this study is to identify the risks and controls used in ERP implementations, with the objective to understand the ways in which organizations can minimize the business risks involved. By controlling and minimizing the major business risks in the first instance, the scene can be set for the successful implementation of an ERP system. The study was motivated by the significance, for both the research and practice communities, of understanding the risks and controls critical for the successful implementation of ERP systems. Following the development of a model of risks and controls, a field study of an ERP system implementation project in an organization was conducted to provide a limited test of the model. The results from the...
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...ERP IN MANUFACTURING SECTOR Group :6 Anubhav Chaturvedi (15) Anirudh Mishra (36) Amol Singh (57) Rohit Patil (60) INTRODUCTION ERP systems have traditionally been used by capital-intensive industries such as manufacturing, Services etc. Manufacturing firms are facing new challenges and in order to stay competitive many manufacturing operations require to be regularly updated with the Information Technology solutions. The manufacturing sector is one of the main economic activities in most of the nations. The most important aspect to characterize IT adoption is the industry and its specific characteristics rather than the country the firms belong to. Different industries have different operating characteristics and environments, and the factors related to ERP use may differ accordingly. Given the complexity of manufacturing firms, we then decide which aspects of a firm influence the use of technological innovations. Most of the manufacturing companies rely on ERP software to manage the entire range of business activities from CRM, manufacturing inventory and processes, accounting software, manufacturing planning, purchasing, quality, and more. For implementing ERP in any manufacturing industry the research objectives revolve around the following parameters(Mainly cost and quality measurement) * To identify whether there is significant difference in performance measures like cost and quality in industries with well defined IT system and industries with not such well...
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