Individuals\u27 absorptive capacity in enterprise system assimilation

The capability of an individual to absorb knowledge about enterprise resource planning (ERP) is a critical element in the development of an organisation&rsquo;s absorptive capacity (ACAP) during assimilation phase of ERP. Prior research have tended to overlook the roles that individuals play in identify external and internal knowledge, assimilate and exploit ERP knowledge. By defining ACAP at the individual level, we seek to enrich our understanding of how individual learn ERP knowledge and how such efforts facilitate the ERP assimilation within organisations. We develop a theoretical model to investigate the assimilation of enterprise systems in the post-implementation stage. Specifically, this model explains how communication climate and top management participation moderates the impact of Individuals&rsquo; ACAP on the assimilation of ERP systems.<br /

The Design and Implementation of a bespoke Enterprise Resource Planning System (ERP) for an acoustical engineering company

This paper will describe the tasks completed so far as part of a Knowledge Transfer Partnership between the University of Hertfordshire and Acoustical Control Engineers (ACE) a ‘small and medium sized enterprise’ (SME) based in Cambridgeshire, UK. ACE’s 25 personnel design, manufacture and install noise and vibration control systems to solve a wide range of acoustic problems. The projects undertaken include acoustic enclosures for supermarket refrigeration plant and for generators used in many situations, together with other more diverse applications such as controlling noise in the workplace and even on a luxury boat. Before the current KTP project the company used some partially computerised systems consisting of spreadsheets to perform acoustic analyses, pricing and project management functions supplemented with a paper based system to ‘fill the gaps’. Enterprise Resource Planning (ERP) systems provide an integrated database for all parts of the organisation allowing decisions to be based on a complete understanding of the organisation’s information, avoiding the problems due to duplication of data and ensuring that the consequences of decisions in one part of the organisation are reflected in the planning and control systems of the rest of the organisation. ERP systems became popular from the 1990’s mainly in relatively large organisations due to the complexity and cost of these systems. This project is unusual in that rather than adapting an off-the-shelf ERP solution to ACE’s very specific and specialised requirements we are taking an ERP development approach in an SME whose legacy systems are made up of spreadsheet and paper based systems. For the software development an Agile approach has been used. Agile involves software development methods based on iterative and incremental development. The initial attempt was to start developing the ERP from an Open Source ERP Source Code; however this effort was futile as a result of the bespoke nature of ACE’s business and product lines. Mapping ACE’s data model to the database which any existing ERP system could be adapted to, proved to be a very difficult problem. Therefore, developing the ERP from first principles was inevitable. Several of the ERP modules have been developed, user training has taken place and the core modules have been signed off. The project is due to complete in September 2014 and by this time we will have further information on how the ERP system has increased the competitiveness of the company, as well as experience of introducing an ERP into an SME. However, as would be expected the work undertaken developing the system so far has had several significant effects on ACE and acted as a catalyst for change in various parts of ACE’s business.Non peer reviewe

Adoption of Open Source and conventional ERP solutions for small and medium enterprises in manufacturing

Many studies on the Enterprise Resource Planning (ERP) market have indicated that very few ERPs have succeeded to fully meet the expectations of an organisation in particularly the Small and Medium Enterprises (SMEs). This is usually due to commercial reasons, because most of the ERP systems are primarily designed and developed for large corporations which is not suitable for simplified and rapidly changing SMEs. With the arrival of licence free open source ERPs and at an affordable price, the problem of capital shortage in SMEs is partially resolved while flexibility remains a problem. In order to solve the flexibility issue, this paper presents methods of (a) an industrial survey and (b) a multistage initiation model to compare open source ERPs and the advantages of conventional ERP’s modular structure to propose an alternative ERP platform. The finding concludes that this alternative platform is feasible to be developed by users as well as flexible enough for growing SMEs in manufacturing

An International Analysis of the Maturity of Enterprise Resource Planning (ERP) Systems Use

Enterprise Resource Planning (ERP) systems dominate the Information Technology (IT) landscape of global companies. Organisations are at different stages in the implementation process ranging from the initial strategic analysis of implementation options, through completed standard implementations and to the sophisticated exploitation of ERP systems using advanced knowledge management, decision support and supply chain management systems. There are also variances in the perspective of managers regarding the strategic potential of ERP systems. We present a maturity model for ERP systems that identifies three key implementation stages. The model is illustrated using case data from 24 organisations in the US and Europe. In stage one, organisations are managing legacy systems and starting the ERP project. In stage two, implementation is complete and the functionality of the ERP system is being exploited across the organisation. In stage three, organisations have normalised the ERP system into the organisation and are engaged in the process of obtaining strategic value from the system by using additional ‘satellite’ systems including knowledge management and supply chain planning. It is shown that the organisations follow an S shaped curve, and that most companies are in the middle stage

Surfacing ERP exploitation risks through a risk ontology

Purpose – The purpose of this paper is to develop a risk identification checklist for facilitating user companies to surface, organise and manage potential risks associated with the post-adoption of Enterprise Resource Planning (ERP) systems. Design/methodology/approach – A desktop study, based on the process of a critical literature review, was conducted by the researchers. The critical review focused on IS and business research papers, books, case studies and theoretical articles, etc. Findings – By systematically and critically analysing and synthesising the literature reviewed, the researchers identified and proposed a total of 40 ERP post-implementation risks related to diverse operational, analytical, organisation-wide and technical aspects. A risk ontology was subsequently established to highlight these ERP risks, as well as to present their potential causal relationships. Research limitations/implications – For researchers, the established ERP risk ontology represents a starting point for further research, and provides early insights into a research field that will become increasingly important as more and more companies progress from implementation to exploitation of ERPs. Practical implications – For practitioners, the risk ontology is an important tool and checklist to support risk identification, prevention, management and control, as well as to facilitate strategic planning and decision making. Originality/value – There is a scarcity of studies focusing on ERP post-implementation in contrast with an over abundance of studies focusing on system implementation and project management aspects. This paper aims to fill this significant research gap by presenting a risk ontology of ERP post-adoption. It represents a first attempt in producing a comprehensive model in its area. No other such models could be found from the literature reviewed

Strategic advantage through the implementation of enterprise resource planning systems.

Thesis (MBA) University of Natal, Durban, 2003.Enterprise Resource Planning (ERP) systems claim to provide organisations with an integrated Information Technology (IT) solution that can be used as an effective business tool with real-time information of all business transactions at the managers' fingertips. ERP software attempts to integrate all departments and functions across a company onto a single computer system that runs off one database and can serve the needs of all the different departments in the company. The investment in an IT solution that will provide strategic information to aid in strategy formulation and decision-making should be part of strategic planning. In short, the ERP system should add to a company's strategic advantage. The challenge to an organisation is to use ERP to leverage opportunities in the competitive environment in order to create value. If a resource view is taken of ERP systems, strategy theory describes the way that an organisation should go about achieving strategic advantage. The IT resource in itself cannot be the basis for competitive advantage in a manufacturing industry. The resource is available to all competitors. The nature of ERP systems however supports the creation of distinctive competences in the organisation through organisational learning. The enhanced capabilities of the organisation, combined with its superior resources form the basis of distinctive competencies that in turn lead to value creation through the advantages created. The test for strategic advantage is to evaluate the strategic options or choices against consistency, consonance, advantage and feasibility. The model for evaluating strategy can also be applied to the planned ERP implementation or to enterprise systems already implemented. This model is based on strategic evaluation and support the process of continuous evaluation and change to respond to triggers in the competitive environment the organisation operates in. In order for ERP systems to add value in the organisation, their implementation must satisfy the strategic evaluation criteria, and continuous business process improvement will follow subsequent evaluation in order to adjust to the changing environment

Enterprise resource planning and customer relationship management value

Ruivo, P., Oliveira, T., & Mestre, A. (2017). Enterprise resource planning and customer relationship management value. Industrial Management and Data Systems, 117(8), 1612-1631. https://doi.org/10.1108/IMDS-08-2016-0340Purpose - The purpose of this paper is to develop and test a theoretical model to measure the impact of enterprise resource planning (ERP) and customer relationship management (CRM) systems and moderating relationships of system and process integration on business value. Design/methodology/approach - ERP and CRM systems are analysed with the resource-based view theory and measured by their impact on business value, having in consideration the moderation of system and process integration. The model was tested and analysed with data collected by Microsoft, from firms that have adopted both ERP and CRM systems in their organisation. Findings - ERP system is found to be an important asset to business value, but CRM systems' impact on business value is found to be not significant. System integration as moderator of ERP or CRM system is found to be not significant but has a positive and significant impact on business value. For process integration, the study finds that it is significant only when moderating the CRM system variable. Research limitations/implications - The model shows that the moderating effects of system and process integration are important variables for understanding the joint business value of ERP and CRM. Practical implications - Adopting an ERP system and ensuring system integration provides a direct impact on business value. In order for a CRM system to have a positive impact on business value, process integration with ERP system must be ensured. Originality/value - This study provides new knowledge on how ERP and CRM systems used together may positively influence value from IT investments, and how systems integration and process integration provide business value.authorsversionpublishe

Long Running Transactions Within Enterprise Resource Planning Systems

Recently, one of the major problems in various countries is the management of complicated organisations to cope with the increasingly competitive marketplace. This problem can be solved using Enterprise Resource Planning (ERP) systems which can offer an integrated view of the whole business process within an organisation in real-time. However, those systems have complicated workflow, are costly to be analysed to manage the whole business process in those systems. Thus, Long Running Transaction (LRTs) models have been proposed as optimal solutions, which can be used to simplify the analysis of ERP systems workflow to manage the whole organiational process and ensure that completed transactions in a business process are not processed in any other process. Practically, LRTs models have various problems, such as the rollback and check-pointing activities. This led to the use of Communication Closed Layers (CCLs) for decomposing processes into layers to be analysed easily using sequential programs. Therefore, the purpose of this work is to develop an advanced approach to implement and analyse the workflow of an organisation in order to deal with failures in Long Running Transaction (LRTs) within Enterprise Resource Planning (ERP) systems using Communication Closed Layers (CCLs). Furthermore, it aims to examine the possible enhancements for the available methodology for ERP systems based on studying the LRT suitability and applicability to model the ERP workflows and offer simple and elegant constructs for implementing those complex and expensive ERP workflow systems. The implemented model in this thesis offers a solution for two main challenges; incompatibilities that result from the application of transitional transaction processing concepts to the ERP context and the complexity of ERP workflow. The first challenge is addressed based on offering new semantics to allow modelling of concepts, such as rollbacks and check-points through various constraints, while the second is addressed through the use of the Communication Closed Layer (CCL) approach. The implemented computational reconfigurable model of an ERP workflow system in this work is able to simulate real ERP workflow systems and allows obtaining more understanding of the use of ERP system in enterprise environments. Moreover, a case study is introduced to evaluate the application of the implemented model using three scenarios. The conducted evaluation stage explores the effectiveness of executable ERP computational models and offers a simple methodology that can be used to build those systems using novel approaches. Based on comparing the current model with two previous models, it can be concluded that the new model outperforms previous models based on benefiting from their features and solving their limitations which make them inappropriate to be used in the context of ERP workflow models

Extending the enterprise: An evaluation of ERP and EAI technologies within a Case Study organisation

It is widely understood that both Information Technology (IT) and Information Systems (IS), provide great benefits in improving the visibility of supply and value chains within and across organisational boundaries. Those enterprises which can realise the benefits of extending their core business processes outwards to clients and trading partners, will be able to create unique supply chain-dependent products and solutions. Thus, such business infrastructures have enabled organisations to expand and improve the effectiveness of their enterprise. One method to achieve this, has been to integrate Enterprise Resource Planning (ERP) systems with web-based and other IS systems, using Enterprise Application Integration (EAI) technologies. This paper seeks to investigate those factors which contributed to a case organisation’s extended enterprise experiences, by using extant ERP and EAI implementation IS evaluation criteria; and by placing the research results within the context of applicable IS research techniques in the area