Identifying and Prioritizing of Readiness Factors for Implementing ERP Based on Agility (Extension of McKinsey 7S Model)

Studies conducted by many researchers indicate high failure rate of projects of implementing ERP systems. To penetrate in global competition market, it seems necessary to carry out studies to assess organizational readiness prior to system implementation to identify weaknesses and strengths points of the organization. Furthermore, organizations should be agile to be able to respond to market changes fast and effectively to survive in competitive environment. ERP and agility are two important tools for achieving competitive advantages. The main goal of the present study was to identify and prioritize organizational readiness factors for implementing ERP based on organizational agility. In this study, along with extension of McKinsey 7S model (strategy, structure, systems, skills, style, staff, shared values) to 9S (7S+ self-evaluation and supportive factors) model, agility criteria were weighted and rated using group AHP with fuzzy logic approach; so that accountability, speed and flexibility have obtained the maximum score. The nine organizational readiness factors were ranked using integrated FAHP and TOPSIS method based on five criteria of agility. The framework was proposed to a real case of Shiraz distribution cooperative firms. Results showed that among the nine organizational dimensions based on agility, the two added to McKinsey dimensions (self-evaluation and supportive factors) are ranked in the first and fourth places. The proposed framework help the firms “to implement ERP system with agility approach” concentrate on effective empowerments and develop strategies based on their own priority

Development of a lean principles framework for ERP implementation process

The aim of this research is to develop a novel framework based on lean principles and tools to be exploited in managing ERP implementation processes in order to enhance the overall success rate of the implementation project, which in turn minimises cost and time overruns. The framework consists of three stages built in a logical sequence taking into consideration the requirements of ERP projects implementations and the lean transformation principles. The first stage starts with an assessment model to measure the organisational readiness for implementing ERP system using leanness assessment approach. The second stage of the framework introduces the use of the Obeya lean tool along with a change management model to help visualize and streamlining the process of ERP implementation. In the final stage, a value stream mapping technique is used to identify potential waste occurrence and eliminate non-value adding activities from the process. As a result, a new eight stages ERP implementation process is developed and presented with descriptions on the activities encompassed in each stage. A research methodology consisting of four major phases was employed to attain the targeted objectives of the research; beginning with project initiation and contextual definition followed by data collection and field study. The data acquired from the previous two phases were used to conduct a thorough analysis from which key findings were drawn and used in the creative development of the readiness assessment model and the framework. Finally, elementary aspects of the framework were put to scrutiny through live case studies and professional expert judgement. The author made use of both qualitative and quantitative research measures. A validation for the ERP readiness assessment model is conducted initially on three case studies, and then the whole framework is validated through two other case studies and experts’ judgments. The results and overall feedback reflected a high level of acceptance of the framework structure and approach. The novel framework has the capability to improve the ERP implementation process providing it is utilised fully. It helps organisation to successfully deliver ERP systems on time, on budget, and with the required functionalities with high-level of acceptance from all stakeholders

An Assessment of Readiness Factors for Implementing ERP Based on Agility (Extension of Mckinsey 7s Model)

Studies conducted by many researchers indicate high failure rate of projects of implementing ERP systems. Furthermore, organizations should be agile to be able to respond to market changes fast and effectively to survive in competitive environment. ERP and agility are two important tools for achieving competitive advantages. The main goal of the present study was to identify and prioritize organizational readiness factors for implementing ERP based on organizational agility. In this study, along with extension of McKinsey 7S model (strategy, structure, systems, skills, style, staff, shared values) to 9S (7S+ self-evaluation and supportive factors) model, agility criteria were weighted and rated using group AHP with fuzzy logic approach; so that accountability, speed and flexibility have obtained the maximum score. The nine organizational readiness factors were ranked using integrated FAHP and TOPSIS method based on five criteria of agility. The framework was proposed to a real case of Shiraz distribution cooperative firms. Results showed that among the nine organizational dimensions based on agility, the two added to McKinsey dimensions (self-evaluation and supportive factors) are ranked in the first and fourth places. The proposed framework help the enterprises “to implement ERP system with agility approach” concentrate on change management and develop strategies based on their own priority

ERP implementation methodologies and frameworks: a literature review

Enterprise Resource Planning (ERP) implementation is a complex and vibrant process, one that involves a combination of technological and organizational interactions. Often an ERP implementation project is the single largest IT project that an organization has ever launched and requires a mutual fit of system and organization. Also the concept of an ERP implementation supporting business processes across many different departments is not a generic, rigid and uniform concept and depends on variety of factors. As a result, the issues addressing the ERP implementation process have been one of the major concerns in industry. Therefore ERP implementation receives attention from practitioners and scholars and both, business as well as academic literature is abundant and not always very conclusive or coherent. However, research on ERP systems so far has been mainly focused on diffusion, use and impact issues. Less attention has been given to the methods used during the configuration and the implementation of ERP systems, even though they are commonly used in practice, they still remain largely unexplored and undocumented in Information Systems research. So, the academic relevance of this research is the contribution to the existing body of scientific knowledge. An annotated brief literature review is done in order to evaluate the current state of the existing academic literature. The purpose is to present a systematic overview of relevant ERP implementation methodologies and frameworks as a desire for achieving a better taxonomy of ERP implementation methodologies. This paper is useful to researchers who are interested in ERP implementation methodologies and frameworks. Results will serve as an input for a classification of the existing ERP implementation methodologies and frameworks. Also, this paper aims also at the professional ERP community involved in the process of ERP implementation by promoting a better understanding of ERP implementation methodologies and frameworks, its variety and history

Deploying Process Innovation in Manufacturing

Manufacturing companies are increasingly under pressure to innovate due primarily to the intense competition they face, particularly under global market conditions. Innovation is recognised as a precondition for survival. Implementation of innovative initiatives in manufacturing is an important and challenging phase of process innovation. This is more so in the pre-implementation phase, in which manufacturing organisations need to prepare and be appropriately ready to deploy their process innovation initiative. This thesis focuses on the methodology of deploying process innovation in manufacturing to identify the factors influencing deployment readiness, evaluate hypothesised influences of some of the factors on deployment readiness, and provide an accessible method of assessing deployment readiness levels. Several important results and significant contributions to knowledge are arising from the research reported in this thesis. The thesis reports on the findings that several factors can influence deployment process innovation which is characterised along the dimensions of context for process innovation, performance, capability and capacity, resources, and collaboration. Through developing and evaluating a conceptual framework for process innovation deployment readiness, the thesis found a significant positive link between process innovation deployment preparedness and being fully ready to deploy. It was also found that having a deployment plan has a significant positive influence on being fully ready to deploy process innovation. These results have important implications for manufacturing managers, especially regarding the need for a deployment plan, ensuring a good climate for innovation, and being prepared to deploy process innovation in manufacturing. Perspectives of manufacturing managers reported in the thesis indicate that manufacturing companies do not necessarily need to attain a 100% deployment readiness level. On average, the companies appear satisfied with about 70% deployment readiness level. A fuzzy logic method for assessing manufacturing process innovation deployment readiness level presented in this thesis will help manufacturing companies gauge their readiness level and identify areas of improvement should they wish to increase their deployment readiness level prior to implementation. The method was validated in a case study company and found useful. The thesis concludes by reinforcing the need for manufacturing companies to rely more on appropriate techniques, such as those arising from this research, for use in successfully managing the deployment of their process innovation initiatives

Customer requirements based ERP customization using AHP technique

Purpose– Customization is a difficult task for many organizations implementing enterprise resource planning (ERP) systems. The purpose of this paper is to develop a new framework based on customers’ requirements to examine the ERP customization choices for the enterprise. The analytical hierarchy process (AHP) technique has been applied complementarily with this framework to prioritize ERP customization choices. \ud \ud Design/methodology/approach– Based on empirical literature, the paper proposed an ERP customization framework anchored on the customer's requirements. A case study research method was used to evaluate the applicability of the framework in a real-life setting. In a case study with 15 practitioners working on the vendor's and the client's sides in an ERP implementation, the paper applied the framework jointly with the AHP technique to prioritize the feasible customization choices for ERP implementation. \ud \ud Findings– The paper demonstrates the applicability of the framework in identifying the various feasible choices for the client organization to consider when they decide to customize their selected ERP product. \ud \ud Research limitations/implications– Further case studies need to be carried out in various contexts to acquire knowledge about the generalizability of the observations. This will also contribute to refining the proposed ERP customization framework. \ud \ud Practical implications– Very few literature sources suggest methods for exploring and evaluating customization options in ERP projects from requirements engineering perspective. The proposed framework helps practitioners and consultants anchor the customization decisions on the customer's requirements and use a well-established prioritization technique, AHP, to identify the feasible customization choices for the implementing enterprise. \ud \ud Originality/value– No previously published research studies provide an approach to prioritize customization choices for ERP anchored on the customer's requirements

Editorial

It is tradition that the Electronic Journal of Information Systems Evaluation (EJISE) publish a special issue containing the full versions of the best papers that were presented in a preliminary version during the 8th European Conference on Information Management and Evaluation (ECIME 2014). The faculty of Economics and Business Administration of the Ghent University was host for this successful conference on 11-12th of September 2014. ECIME 2014 received a submission of 86 abstracts and after the double-blind peer review process, thirty one academic research papers, nine PhD research papers, one master research paper and four work-in-progress papers were accepted and selected for presentation. ECIME 2014 hosted academics from twenty-two nationalities, amongst them: Australia, Belgium, Bosnia and Herzegovina, Brazil, Finland, France, Greece, Ireland, Lebanon, Lithuania, Macedonia (FYROM), Norway, Portugal, Romania, Russia, South Africa, South Korea, Spain, Sweden, The Netherlands, Turkey and the UK. From the thirty-one academic papers presented during the conference nine papers were selected for inclusion in this special issue of EJISE. The selected papers represent empirical work as well as theoretical research on the broad topic of management and evaluation of information systems. The papers show a wide variety of perspectives to deal with the problem

Strategies for Implementing a Successful Enterprise Resource Planning System

The U.S. Department of Defense executives consider enterprise resource planning systems as a critical technology because of increasingly global operations and audit compliance pressures, which may affect organizational performance and overall success. The estimated cost to implement enterprise resources systems to avoid failure and meet budget cost across the Department of Defense services and agencies has ranged from $530 million to$2.4 billion. Guided by the general systems theory, the purpose of this single-case study was to explore enterprise resource planning strategies developed and implemented by United States Marine Corps military leaders. Data collection consisted of a review of organizational documents and semistructured interviews of 5 organizational leaders in a United States Marine Corps base in Albany, Georgia. Data analysis entailed interview transcription, keyword and phrase coding, and emergent theme identification. The prominent emergent themes were essential strategic planning guidance and organizational leaders and change management, which are the essential components for effectively implementing enterprise resource planning systems. The Department of Defense executives and senior leaders may use the findings of this study to develop an essential strategic plan, which could reduce the excessive cost and over-budget associated with enterprise resource planning systems. Social change implications include enhancing end user knowledge and reducing inefficiencies within organizations to improve corporate social responsibility

Critical Success Factors in Enterprise Resource Planning Implementation in U.S. Manufacturing

Organizational leaders have increasingly turned to enterprise resource planning (ERP) applications, also known as decision-support systems, to make their firms\u27 operational, tactical, and strategic processes more efficient and effective in the changing global marketplace. High failure rates in ERP systems implementations make these projects risky, however. Most prior research on critical success factors for conventional ERP implementation has been on large enterprises, resulting in a gap in knowledge on these factors in the small and medium enterprises that constitute the majority of U.S. employer firms. A qualitative modified Delphi study with an expert panel of U.S. manufacturing consultants and 3 iterative rounds of data collection and analysis revealed consensus on 8 critical success factors in ERP implementations, with the highest agreement on top management support and commitment, enterprise resource planning fit with the organization, quality management, and a small internal team of the best employees. In addition to furthering knowledge in the fields of leadership and enterprise applications, the study expands enterprise resource planning experts\u27 and scholars\u27 understanding of strategies to improve project success and the triple bottom line for any size enterprise in the manufacturing industry. Practitioners in the ERP industry can also apply approaches outlined during ERP implementations to mitigate risk during these engagements. Implications for positive social change include additional job opportunities and higher wages through increased efficiencies in ERP applications

Total Ownership Cost Modeling Of Technology Adoption Using System Dynamics: Implications For Erp Systems

Investment in new technologies is considered by firms as a solution to improve their productivity, product and service quality and their competitive advantages in the global market. Unfortunately, not all technology adoption projects have met their intended objectives. The complexity of technology adoption along with little consideration of the long term cost of the technology, are among the factors that challenge companies while adopting a new technology. Companies often make new technology adoption decision without enough attention to the total cost of the technology over its lifecycle. Sometimes poor decision making while adopting a new technology can result in substantial recurring loss impacts. Therefore, estimating the total cost of the technology is an important step in justifying the technology adoption. Total Ownership Cost (TOC) is a wildly-accepted financial metric which can be applied to study the costs associated with the new technology throughout its lifecycle. TOC helps companies analyze not only the acquisition and procurement cost of the technology, but also other cost components occurring over the technology usage and service stage. The point is that, technology adoption cost estimation is a complex process involving consideration of various aspects such as the maintenance cost, technology upgrade cost and the cost related to the human-resource. Assessing the association between the technology characteristics (technology upgrades over its life cycle, compatibility with other systems, technology life span, etc) and the TOC encompasses a high degree of complexity. The complexity exists because there are many factors affecting the cost over time. Sometimes decisions made today can have long lasting impact on the system costs and there is a lag between the time the decision is taken and when outcomes occur. iv An original contribution of this dissertation is development of a System Dynamics (SD) model to estimate the TOC associated with the new technology adoption. The SD model creates casual linkage and relationships among various aspects of the technology adoption process and allows decision makers to explore the impact of their decisions on the total cost that the technology brings into the company. The SD model presented in this dissertation composes of seven sub-models including (1) technology implementation efforts, (2) workforce training, (3) technology-related workforce hiring process, (4) preventive and corrective maintenance process, (5) technology upgrade, (6) impact of technology on system performance and (7) total ownership cost sub model. A case study of Enterprise Resource Planning (ERP) system adoption has been used to show the application of the SD model. The results of the model show that maintenance, upgrade and workforce hiring costs are among the major cost components in the ERP adoption case study presented in Chapter 4. The simulation SD model developed in this dissertation supports trade-off analysis and provides a tool for technology scenarios evaluation. The SD model presented here can be extended to provide a basis for developing a decision support system for technology evaluation