Cost estimation approach of a digital twin implementation in industry

In the context of Industry 4.0, the concept of the digital twin provides an approach, which supports companies by finding solutions for complex problems. Due to the novelty of the technology, companies face certain issues regarding the implementation, like the uncertainty of the arising costs. By introducing a methodology in this publication, an estimation approach for the costs of a digital twin implementation is expounded. Through the assessment of the actual digitization level of a company previous relevant achievements are considered in the cost estimation. Furthermore, the methodology is implemented in an Excel tool and validated within an industry use-case

Lean manufacturing based cloud enterprise resource planning for SME digitalization

The Covid-19 pandemic is a right time for SME to grab the benefit of digital transformation. The SME that involved in digitalization will be more ready to deal with challenges of the pandemic. In current situation (2020-2022), the pandemic became a barrier to the face-to face business operations, resulting in a significant decrease of sales. A survey conducted by the Indonesian Chamber of Commerce and Industry (KADIN) in May 2020 found that around 70% of businesses in Indonesia had experienced a decline in sales due to the pandemic. Many businesses and organizations have had to rapidly adapt their operations and processes to comply with changing regulations, keep their employees safe, and meet the needs of their customers or clients. In order to overcome this issue, there is a motivation to find a more effective way of the digitalization framework. The purpose of this research is to develop a new framework of cloud enterprise resource planning (CERP) that is more effective for improving sales through a better productivity and low cost. The new CERP integrates business process re-engineering and lean manufacturing is able to digitalize the process at a minimum cost. The development process of the framework involves forum group discussions with seven expert including manager, director, and consultant. This framework has been implemented for one year in nine cosmetic companies showing the improvement in productivity by 77% through eliminating thirty one necessary non value-added activities (NNVA) and non value-added activities (NVA). The cost comparison shows that the proposed CERP framework has a lowest cost ($1001) compared to existing CERP softwares in the global marke

The acceptance of Enterprise Resource Planning (ERP) systems and financial performance of some research propositions

The purpose of this research paper to present the synthesized theoretical and empirical literature to help in the development of propositions and suggestions of a research agenda on the acceptance of ERP systems and their link with financial performance, the paper develops the technology acceptance model (TAM) to synthesize relevant literature and to develop proposition for future research agendas. The proposition and the research agenda will provide an adequate explanation of the acceptance of ERP systems, and their possible association with financial performance of organizations. The literature does provide a canon of acceptance of ERP systems in relation to financial performance. This research provides a positive association between the acceptance of ERP systems and financial performance. Also, the use of TAM theory provides further insight into identifying the adoption factors of ERP

Understanding complexity of ERP implementations::Exploration of three complexity research approaches,

Implementing enterprise resource planning (ERP) systems (in this thesis referred to as ERP implementation) is considered to be a complex matter. ERP implementation is considered complex because, in most cases, it affects many parts of an organisation. Also, the costs of software, hardware, maintenance and particularly the implementation process itself are high and risky for an organisation. Therefore, research in ERP implementation is focused on providing practice with useful insights and tools for better cost and risk handling. ERP implementations are executed for over 20 years. Unfortunately, neither science nor practice has produced sufficient tools, guidelines and methods for proper management and control of ERP implementations. After 20 years, research and practice still consider ERP implementation a complex matter. Through our research, we intend to approach this complexity of ERP implementation from a new perspective. A perspective which takes the mere construct ‘complexity’ as a starting point. We studied ERP implementation complexity as a construct in the context of complexity research and asked ourselves how the complexity of ERP implementations can best be explored

The Estimation of ERP Lifecyle Costs: A Quantitative Analysis of Cost Types and Cost Drivers for German Small and Mid-Sized Companies

Contextualisation: Enterprise Resource Planning (ERP) systems have become one of the largest IT investments in recent years. Yet the implementation of this IT technology often involves some problems. Analyses and studies have identified very high cost overruns and project fiascos. There is an obvious need for better cost estimation, allowing imple­menting organisations a more precise or realistic specification of costs. Unfortunately, neither has a suitable model been developed nor are traditional software estimation mod­els suitable to be transferred to ERP cost prediction. Research about this issue is relatively fragmented and the analysis of ERP costs is still in its fledging stages. Purpose: This thesis aims to analyse the cost fields and cost drivers during the whole lifespan of an ERP lifecycle in German SMEs in the industrial sector with 30 to 1,500 employees. Different approaches for predicting ERP costs will be deduced on the basis of these findings. Conceptual Framework: Within this thesis, the three factors "cost types", "cost drivers" and the "ERP lifecycle" are combined into one conceptual framework. The conducted systematic literature review identified the five different costs types "internal personnel costs", "external personnel costs", "hardware costs", "licence costs" and "ERP software costs" and found 35 cost drivers to be relevant in this thesis. The lifecycle is divided into three stages: evaluation, implementation and maintenance. The combination of the differ­ent cost types and different lifecycle phases results in 12 different cost fields. The cost driver candidates are analysed for their impact on each cost field. Method: In order to access this research issue, a quantitative survey design that involved asking responsible managers in the target group about their ERP expenditures was con­ducted. This was accomplished by way of self-completion questionnaires provided by an online survey tool. The sampling strategy was a self-selecting one that yielded 72 eligible respondents. Based on this sample, the data was analysed for correlations, and multiple regressions were conducted using SPSS. Findings: Firstly, this thesis identifies a cost structure of cost fields for the costs arising during each ERP lifecycle phase and for its whole lifespan. Secondly, it maps which of the identified cost drivers have an influence on each of the 12 cost fields. Thirdly, it cre­ates a regression model of how to predict ERP costs for its whole lifespan. The developed model yields a mean magnitude of relevant error (MMRE) of 34%. Comparing this value to other approaches shows that it contributes to an improved prediction model. So far it is the best fit in ERP effort estimation