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

Conceptual model for cloud ERP adoption for SMEs

The Small and Medium Enterprise industry is experiencing a major transformation towards cloud ERP systems. These systems can organize, and maintain data remotely, accept a pay-as-you- use method and enhance related information through a cloud computing platform. Hence, this makes the cloud ERP system crucial for their sustainability and enables them to become competitive in the market. However, the adoption rate of cloud ERP among Small and Medium Enterprises (SMEs) has been recorded as slightly low compared to other enterprise systems like Customer Relationship Management. This could be attributed to unclear adoption factors among SMEs and the lack of a theoretical model that can enhance the predictive power to adopt a cloud ERP system. To address this gap, the objective of this study is to develop a conceptual model by which to investigate the broad factors which influence or inhibit the adoption of cloud ERP, the model based on TOE, DOI and FVM. Thus, this model intends to help SMEs managers understand and increase predictive capacity on cloud ERP adoption. The model has been constructed using four dimensions, namely; task, technology, organization and environmental. Findings from this study are projected to be able to instruct SMEs decision-makers on the factors that will lead to successful adoption. The proposed model will be a critical lens for decision-makers on cloud ERP adoption

Determinants of Financial Sustainability of Non-Governmental Organizations (NGOs) in Ghana

Financial sustainability of NGOs has become a global concern in the wake of global financial crisis which has reduced donor funds from developed economies to developing countries. NGOs play an important role in developing countries like Ghana and as such their financial sustainability is very important not only for the NGOs but the Ghanaian economy. The study examined the factors that determine financial sustainability of NGOs in Ghana based on the following variables; sound financial management practices, income diversification, own income generation, good donor relationship and the use of ERPs and Cloud Accounting by NGOs. The study sampled 56 NGO where data was collected through the administration of questionnaires. Data was analysed using various statistical tools such as frequencies, graphs, tables, Kruskal Wallis Test and regression analysis. The results of the study showed that NGOS in Ghana are donor dependent and have little diversification of income as well as less own income generation measures in place. This results show that NGOs in Ghana are not financially sustainable and as such need income generating income measures that will help them to be financially reliable. The results show that sound financial management practices, own income generation by NGOs, diversification of income and good donor relationship are the key determinants of financial sustainability of NGOs in Ghana. The use of ERP systems and cloud accounting had positive effect on NGO financial sustainability but statistically insignificant. The results call for NGOs to take steps to improve these factors in their respective organization if they want to improve their financial sustainability

An adoption model of cloud enterprise resources planning for Malaysian small and medium enterprises

The Cloud Enterprise Resource Planning (ERP) system offers promising benefits for the development of Small and Medium Enterprises (SMEs). It helps to address many of the challenges faced by SMEs and significantly promotes them in terms of business operations and use of resource. Despite its benefits, the research on cloud ERP adoption among SMEs in developing countries has not been fully explored, leading to a low rate of cloud ERP adoption among SMEs. Furthermore, the factors which influence SMEs to adopt the cloud ERP system are still unclear. In an attempt to tackle the aforementioned situation, this research investigated the influencing factors that have determined and enhanced cloud ERP adoption rates. To identify factors and develop the model used in this research, the researcher conducted a Systematic Literature Review (SLR). The model was proposed based on three integrated Information System (IS) predominant theories, namely, Technology- Organization-Environment (TOE) framework and Fit-Viability Model (FVM) with extension of Diffusion of Innovation (DOI) theory to scrutinize the influential factors leading towards Cloud ERP Adoption. Thirteen hypotheses were developed to test and validate the model based on the decision to adopt cloud ERP. A positivism paradigm with quantitative approach was applied to conduct this research. Purposive sampling technique and a survey method were applied and data were collected from SMEs who have already adopted cloud ERP that provided 174 usable responses. The analysis was conducted by using Structural Equation Modeling (SEM) technique through Partial Least Squares (SmartPLS 3.2.7) software to determine the significant relationships of the independent factors to Cloud ERP Adoption. The results showed that Task- Technology Fit, Task Interdependence, Relative Advantage, Compatibility, System Trust, Security, Top Management Support, Employee Cloud ERP Knowledge, Cost Saving, and Competitive Pressure were significantly related to Cloud ERP Adoption. On the other hand, Security was found to have no relationship (p > 0.05) with Task- Technology Fit. Similarly, Government Support and Vendor Support were found to have no relationship (p > 0.05) with Cloud ERP Adoption. In line with this, the research model can be explained as 65.2% of variance from all the independent variables. This implies that the model has substantial predictive power to explain cloud ERP adoption. Finally, this model can be used to guide cloud ERP ecosystems to enhance their knowledge so as to successfully evaluate and adopt the cloud ERP system

The role of cloud computing in addressing small, medium enterprise challenges in South Africa

This thesis was motivated by Roberts (2010) who found that 63% of SMEs in South Africa do not make it past second year of operation. To expand further on this problem, we reviewed literature to understand key business challenges experienced by SMEs in South Africa which contribute to this high failure rate. The challenges include red tape, labour legislation, lack of skills, lack of innovation, impact of crime, and lack of funds. The research project aimed to answer a key question: “How can information technology, in the form of Cloud Computing be used to address the challenges faced by small and medium businesses in South Africa?” To answer this question, data was collected from 265 SME companies and quantitatively analysed. It is important to note that the profile of SMEs targeted in this study are those that employed fewer than 200 employees, with a turnover of not less than 26 million rand per annum, and registered with South African Revenue Services (SARS) and also with the Companies and Intellectual Property Commission (CIPC) of South Africa. Over 60% of the firms that responded to the survey were in business for more than 10 years which means we are mainly dealing with data from businesses that have past the survivalist stage and are matured businesses. These are businesses that can share their experiences and challenges they faced throughout their journey. The profile of SMEs in this study should not be confused with that of Very Small Medium Enterprise Businesses. The questionnaire was designed to address four themes being the Demographic profile, SME Business Environment, Threat of Survival, and lastly Technology Adoption. Key finding in this research is that 60% of the panellists stated that red tape is the overriding challenge that small businesses contend with. 67% of the panellists confirmed that they have not invested in their businesses in the past year; and 53% stated that they have not applied for finance from the bank for fear of being rejected. Only 30% of the SME market were found to use enterprise resource planning (ERP) and 62% do not have their own IT department. Of great concern is that 65% of the panellists have experienced server down time at least once in the past year. Inability to predict the rising IT costs in a firm has been cited as the main concern when running IT on premise. The cost predictability finding was also discovered to be a benefit enjoyed by the SMEs who use Cloud Computing. The conclusion is that there is a relationship between Cloud Computing, Small and Medium Enterprise businesses and the challenges they face in their business environment. To address the identified business challenges, technology adoption studies by Gumbi & Mnkandla (2015), Carcary, Doherty & Conway (2014), Lacovou et al (1995), Mohlomeane & Ruxwana (2014), Kshetri (2010), BMI Research (2018), Conway & Curry (2012), Li, Zhao & Yu (2015), Wernefeldt (1985), Schindehuitte & Morris (2001), Tornatzy & Flesher (1991) were reviewed. From these publications, the Technology, Organisational and Environmental (TOE) was found to be relevant and of interest for use in answering the main research question. This study developed the Cloud Adoption Framework which is the anchor of all SME challenges. Key study contribution is that the TOE model, which is predominantly used to understand the determinants of technology adoption like various industry applications, infrastructure innovations etc., are now used to address specific challenges that have contributed in the high failure rate of SME business. This is the first-time TOE model has been used to align with key SME challenges that contribute to firms’ failure. Specific technology across Software, Infrastructure and Platform services models are recommended for use by SMEs to ensure challenges are mitigated and improve the chances of survival for SMEs operating in South Africa. By following the recommended Cloud Adoption Framework, SMEs should be able to navigate the complexities brought about by the tough operating environment and also the technologies available to address those challenges. All six challenges have solutions in Cloud Computing and SMEs are educated on these solutions and also how to access these on a pay as you use model of consumption.Business ManagementD.B.L

Business process modelling in ERP implementation literature review

Business processes are the backbone of any Enterprise Resource Planning (ERP) implementation. Business process modelling (BPM) has become essential for modern, process driven enterprises due to the vibrant business environments. As a consequence enterprises are dealing with a substantial rate of organizational and business processes change. Business process modelling enables a common understanding and analysis of the business processes, which is the first step in every ERP implementation methodology (blueprint phase). In order to represent enterprise processes models in an accurate manner, it is paramount to choose a right business process modeling technique and tool. The problem of many ERP projects rated as unsuccessful is directly connected to a lack of use of business process models and notations during the blueprint phase. Also, blueprint implementation phase is crucial in order to fit planned processes in an organization with processes implemented in the solution. However, business analysts and ERP implementation professionals have substantial difficulties to navigate through a large number of theoretical models and representational notations that have been proposed for business process modeling (BPM). As the availability of different business process modeling references is huge, it is time consuming to make review and classification of all modeling techniques. Therefor, in reality majority of ERP implementations blueprint documents have no business process modeling included in generating blueprint documents. Choosing the right model comprise the purpose of the analysis and acquaintance of the available process modelling techniques and tools. The number of references on business modelling is quit large, so it is very hard to make a decision which modeling notation or technique to use. The main purpose of this paper is to make a review of business process modelling literature and describe the key process modelling techniques. The focus will be on all business process modeling that could be used in ERP implementations, specifically during the blueprint phase of the implementation process. Detailed review of BPM (Business process modeling) theoretical models and representational notations, should assist decision makers and ERP integrators in comparatively evaluating and selecting suitable modeling approaches

From strategy to operations and vice-versa: a bridge that needs an Island

The Information Systems support particularly for Tactical Management is not an explicit or distinct term. There are many concepts and artifacts that are providing contemporary foundations for Information systems in the companies, both in theory and in practice. We tried to analyze different approaches, in order to determine their support specifically for tactical management. Out of this attempt, the realization is that these seemingly overarching bridges from Operations to Strategy and vice-versa appear to be overshooting an important island - the tactical management level, particularly in recognizing its distinct characteristics to be served with adjusted concepts and solutions. We see tactical management as the managerial function that implements strategies, by deploying and utilizing specific resources from the operational level in order to gain that specific competitive advantage prescribed in the strategy. The diversity of approaches and tools is provided for the strategic and overwhelmingly for operational management issues. This theoretical research is analyzing the specifics of the Sense-and-Respond Framework on a tactical level towards perfecting the sensing part of it (in terms of sustaining "low latency" (instead of operational "no latency") and striving for tactical need for "right-time" (instead of the current and hot operational "real-time") information), and how it is being closed in theory and practice on a strategic, tactical and operational level with 'endings'. Also, the tactical management characteristic of working in unpredicted environment and needing high adaptability, requires involvement of concepts and approaches that provide adaptability such as, in our opinion, the Sense-and-Respond managerial concept and the SIDA loop. To some extent, tactical management is being assimilated either by strategy or by operations, as this research confirms. Hopefully, we will result with increased perceptiveness that tactical management needs special theoretical and practical focus and output propositions. The specific sensing and interpreting, deciding and acting, in the role of a tactical manager is neither only automatic, data-capturing process nor a person-independent or company-independent one. If, and after this viewpoint is shared, much more efforts will be streamlined in the tactical management "how" to do "what" is expected, on theoretical and on practical level

A conceptual framework for capability sourcing modeling

Companies need to acquire the right capabilities from the right source, and the right shore, at the right cost to improve their competitive position. Capability sourcing is an organizing process to gain access to best-in-class capabilities for all activities in a firm's value chain to ensure long-term competitive advantage. Capability sourcing modeling is a technique that helps investigating sourcing alternative solutions to facilitate strategic sourcing decision making. Our position is applying conceptual models as intermediate artifacts which are schematic descriptions of sourcing alternatives based on organization's capabilities. The contribution of this paper is introducing a conceptual framework in the form of five views (to organize all perspectives) and a conceptualisation (to formulate a language) for capability sourcing modelling

The creation of business architecture heat maps to support strategy-aligned organizational decisions

The realization of strategic alignment within the business architecture has become increasingly important for companies. Indeed, it facilitates business-IT alignment as a well-designed business architecture helps both to identify the appropriate requirements for IT systems and to discover new business opportunities that can be realized by IT. However, there is a lack of alignment techniques that support organizational (re) design decisions during the operation phase as the actual performance of business architecture elements is neglected. Capability heat maps provide a useful starting point in this respect as they focus on the creation of a hierarchy of prioritized capabilities, which are characterized by a performance measure. In this paper, these techniques will be extended to support strategy-aligned decisions within the business architecture. The identification of the relevant business architecture elements is based on state-of-the-art enterprise modelling languages, which enable the development of enterprise models on distinct layers of the business architecture. Strategic alignment between these elements will be realized by using prioritization according to the Analytic Hierarchy Process (AHP), while performance measurement will enable the creation of a proper decision support system. Afterwards, the proposed heat map will be applied on a case example to illustrate its potential use. This results in the completion of a first build-and-evaluate loop within the Design Science methodology

Meeting point of strategy and operations: tactical management sense and response framework enhancement

We recognize a problem of work overload in every managerial position nowadays. This is complemented with data overload, and still somehow, information inadequacy. We recognize the problem of rather clear strategic or business plan expectations and inability to meet them. We also recognize the problem of complexity of issues every manager has to deal with in all of their diversity. All of these elements persisting in an uncertain and unpredictable environment of today's business, technology and economy, where planning is trading places with structuring, modularizing and preparing oneself in being adaptive to any given circumstances, especially in terms of tactics, denote longing for multidimensional support. There are various efforts and products to automatize and enrich the data in order to give basis for better decision-making and problem solving. Also, there are frameworks to formalize and verbalize the strategic or business plan expectations and targets with respective performance measurement in order to point out the direction where a business unit/company should be headed. And quite a lot is being done on a subject-specific areas such as: Alignment of IT and Strategy, Business Operations and Strategy,. But the perceived "boiling" zone of tactical management is somehow un-addressed, both in theory and with feasible artifacts. Tactical Management as the managerial function that implements strategies and deploys and utilizes specific resources from the operational level in order to gain that specific advantage prescribed in the strategy has both differentiating and uniting characteristics when compared to operations and strategy. Furthermore, if standing in the shoes of a tactical manager, what one will see as work description, will be overwhelming crossroads of unmatched information flows in structure, depths, sources, manners, complexity, timings, and expectations. How to perceive, organize, handle and utilize all that landscape with what is given, and be able to handle it dynamically, appropriately and with least expenditures, is what we are aiming for. It's neither straightforward, nor an easy, automated task. For anyone. It is both company-and person-dependent task. This research focuses on tactical management, from the perspective of the individual manager. We believe that by Enhancing the Sense-and-Respond Framework on a tactical level we will assist the individual tactical manager with increased adaptability and handling complexity