Enterprise resource planning systems implementation and upgrade (a Kenyan study)

In recent years there has been an increase in using Enterprise Resource Planning (ERP) systems in large companies and government corporations mainly in developed countries. While there is wide adoption of ERP systems in Western economies, developing countries lag far behind. However, due to recent economic growth, developing countries such as Kenya are increasingly becoming major targets of ERP vendors. There is an urgent need for under- standing ERP implementation issues in developing countries, as ERP systems are still in their early stages in these countries. They face additional challenges related to economic, cultural and basic infrastructure issues. This research investigates the organisational and national context within which ERP is adopted and used in Kenya, and how the context and ERP influence each other. In general, this research is based on the need to study organisations in their societal contexts and information systems in their organisational settings. The research contributes to the controversial debate on the conflict between standardisation imposed by ERP systems and localisation of business practices. This study provides some key insights into the implementation and use of ERP systems in the public and the private sectors in Kenya. Case study findings suggest that the company sector plays an important role in ERP implementations in several key dimensions. ERP systems with in-built business practices express the tendency toward standardisation. In addition, the study investigates the challenges faced by organisations implementing ERP systems in Kenya and factors influencing ERP upgrade decisions. Findings of this research suggest that ERP implementation and upgrade is influenced by, but not necessarily bound by, existing contextual factors - national and organisational. Two models, namely, the Empirical ERP Implementation Model (EEIM) and the Upgrade Decision Model (UDM), are developed to represent ERP implementation and upgrade practices. The EEIM helps to identify why there will be particularly high variance in potential outcomes and further validates which organisational contexts and ERP implementation configurations create options during ERP implementation and usage. The UDM makes a novel contribution by showing how different forces interact to bring an aggregate of influences to a threshold level where an ERP system upgrade becomes necessary. The findings of this study also aid the management of organisations that are implementing ERP systems to gain a better understanding of the likely challenges they may face and to enable them to put in place appropriate measures to mitigate the risk of implementation failures. This study also proposes an IT strategy framework which can be used by organisations planning to implement ERP to align their business and IT strategy. Finally, the study provides practical guidelines to practitioners on ERP implementation and upgrade based on the experience of the case study organisations and the ERP consultants interviewed

A Study of Sustainability in the Oil and Gas Supply Chain

There is a general consensus that human activity has significant impact on global climate change with significant consequences to the environment. Although there has been relatively limited research on the relationship between corporate environmental performance and corporate financial performance, empirical of the relationship between proactive corporate climate change strategies and economic performance is still in need of clear delineation. It is in light of this hat this research examines the impacts of sustainability adoption on competitive performance of oil and gas companies. The research explores the notion of market driven sustainability by establishing an empirical link between sustainable supply chains characteristics and organisational competitiveness. The overall aim is to develop an empirical model of sustainable supply chain characteristics that improves resource utilisation, profit maximization and competitiveness in the oil and gas industry. The research reviews existing literature on supply chain management, sustainability and competitive objectives in order to generate an appropriate and adequate context for relevant analytical investigations. Primary data on sustainability and its impacts on organisational performance were collected from UK and gas industry through survey by questionnaire. The results show that the most significant drivers of sustainability are the desire to conserve energy, increase market share and improve competiveness. However, legal and regulatory pressure, in contrast to common perspectives in the literature, was not seen as strong drivers of sustainability. The most significant inhibitors of sustainability are inappropriate infrastructural facilities, higher take-up costs, shortage of information on sustainability and employees lack of environmental awareness. The results further indicate that, though sustainability strategies implemented by the respondent firms varied in scopes, these strategies were being extensively and successfully implemented. Generally, the adoption of sustainability in oil and gas supply chain leads to improved economic performance and environmental performance, which, in turn, positively impact organisational competitiveness. These results are of particular importance to managers, government policy makers environmentalists and researchers

A New Framework for Enterprise Resource Planning Systems Implementation for SMEs in the Industrial Manufacturing Sector in Iran

This thesis proposes an Enterprise Resource Planning (ERP) implementation model for small to medium-sized enterprises (SMEs) in the discrete manufacturing industry sector in Iran. Three discrete manufacturing SMEs, in two different geographical locations in Iran (Isfahan and Tehran), were used as the case studies for primary qualitative research and data analysis. The proposed model identifies ERP implementation phases, three main dimensions of change and a range of related change elements that influence ERP project success in the discrete manufacturing sector in Iran. The three main dimensions of change are technology deployment, people competencies, and process improvement; and these are evident in this study’s three implementation phases: pre-implementation, implementation, and post-implementation. Being exploratory in nature and adopting an interpretivist epistemology, the research pursues a qualitative approach, consisting of a survey (with follow-up interviews), questionnaires, semi-structured interviews and documentary evidence for data collection. The case study approach allowed the researcher to gain an in depth understandings of the nature of ERP implementation in discrete manufacturing SMEs and the degree of success they have achieved. The first set of data was collected through a literature review and qualitative survey of 75 manufacturing SMEs in Iran in order to understand the extent of IS/ERP systems implementation in Iranian manufacturing SMEs. The findings from the literature were used to develop a provisional conceptual ERP implementation model. The second set of data was collected from three discrete manufacturing SMEs through questionnaires and semi-structured interviews conducted with various employees. The conceptual ERP implementation model was further improved based on findings drawn from the case study research. The final model was developed to represent ERP implementation phases, dimensions and elements of change in the context of SMEs in the discrete manufacturing sector in Iran. The model is a contribution to knowledge in this field, and affords IT practitioners and professionals a better understanding of the potential challenges they may face during such ERP projects. The model enables them to balance the three dimensions of change, providing a roadmap of change elements that need addressing as an ERP project progresses from phase to phase

A proposed model for enterprise resource planning benefits for SMEs

Small to medium sized enterprises (SMEs) play a significant role in global and national economies, both in developed and developing countries, contributing significantly to economic growth and job creation. Yet, SMEs face ongoing survival issues as their limited access to resources often constrains their ability to compete and realise their potential. Enterprise Resource Planning (ERP) systems are known to be a crucial component in realising benefits for any organisation and are seen as significant contributors to an organisation’s performance. However, only a portion of SMEs report that their value expectations have been met in adopting an ERP system. SMEs require a better understanding of how to extract value from ERP adoption in order to remain competitive. An on-going SME problem is a lack of low-level awareness of the benefits that an ERP system is capable of providing them. The problem is stated as “SMEs do not understand the benefits derived from the adoption of an ERP system”. The purpose of this treatise was to determine a clearer understanding of how ERP systems can be considered a technological innovation that may be exploited by an SME to deliver business value by increasing the performance of the SME and thereby increasing the SME’s competitive advantage. A literature review was conducted on ERP and SMEs which identified benefit models grounded in the theories of Diffusion of Innovation (DOI) and Resource Based View (RBV). DOI explains the benefits derived from ERP use as the technology diffuses throughout the social organisation and RBV measures the business value extracted from ERP adoption and use. A model for ERP benefits for SMEs was proposed based on the extant literature and empirical evaluation on a sample of 107 SYSPRO ERP users in South Africa. The model was statistically assessed as to the relationships between the independent variables of ease of use, collaboration, capabilities, efficiencies, analytics, industry sector and maturity against the dependent variable of ERP business value. The variables of analytics, capabilities and ease of use together explain 68.9% of the variance of ERP business value, while analytics and capabilities explain 53.8%. No significant relationship was found for efficiencies, collaboration, industry or maturity, being a measure of length of years’ experience in ERP use. The results indicate that SMEs perceive analytics to be a valuable determinant of ERP value contributing to the competitiveness of SMEs. The higher the SME focuses on analytics, the greater the organisation’s performance increases due to the enhancement of analytical-based decisions aiding in a better decision-making process. Capabilities are the degree to which an ERP system caters for the functional needs of the SME. This treatise argues that SMEs should pay particular focus on their operational requirements and whether the ERP system is capable of providing them as customisation of the ERP is costly. Organisational personnel utilising ERP must be comfortable utilising it. Perceptions as to an ERP’s complexity and usefulness define the ease-of-use. SMEs should consider the inherent aspects of a given ERP system that support the adoption rate of their personnel of an ERP system. Practically, SMEs should assess the degree of system intuitiveness both during ERP selection and during the adoption lifecycle phases. ERP providers should focus on the provisioning of aspects both in the software and during the implementation of an ERP system at an SME in ensuring the system is intuitive, useful, easy to use, functionally addresses the SME requirements simply and surfaces meaningful analytics in support of decision-making process

Justifications for the Implementation of Shadow IT Solutions by Functional Departments in an Organisation

Background: The implementation of information technology (IT) solutions by end-users, while bypassing organisational laid-down IT acquisition and implementation processes and controls, poses a significant challenge for most organisations. This phenomenon, which is known as Shadow IT (SIT), has major financial, legal and security implications for the organisation. Studies indicate that even when organisations implement IT policy to minimise the implementation of SIT, end-users may still find innovative ways to bypass the IT department when implementing unsanctioned software. Purpose of the research: The objective of this study was to investigate how end-users (functional departments) who implement SIT in organisations justify their actions. The term Justification refers to the techniques employed by a social actor to indicate that their deviant behaviour is actually reasonable. Understanding justifications for SIT is essential for IT managers since they can understand them as justification and not confuse them with other phenomena and at the same time they can devise appropriate strategies to counter them. IT Managers who are not aware of the justifications for SIT may implement measures which may not be effective in curbing the phenomena. Design/Methodology/approach: The study adopted an interpretivist approach. The study was guided by the 'Neutralisation Theory’ from the social deviance discipline. The study examined whether an organisation had an IT policy which prevents end-users from implementing SIT, and also assessed the 'Neutralisation’ techniques employed by end-users to justify SIT. The study adopted a case study approach based on a South African office of a multinational organisation. The study collected data through (i) semi-structured interviews with end-users from different functional departments who were involved with implementation of SIT and (ii) documentation (IT policy and email correspondences). The study adopted the purposeful sampling (snowball) technique to target the employees who were involved with the implementation of SIT. A total of 13 respondents were interviewed. The data was analysed using thematic analysis approach. Findings: The organisation did not have an IT policy which prevented functional departments from implementing SIT. Instead, it had a policy which allowed functional departments to implement their own IT solutions as long as they inform the IT department to assess the software application for potential risks and compatibility with the existing landscape. Most respondents did not use Neutralisation techniques to justify the implementation of SIT due to the policy which allowed them to implement their own IT solutions. Nevertheless, the respondents who employed Neutralisation techniques mainly used Denial of responsibility, Denial of injury and Appeal to higher loyalties to justify SIT. Originality/contribution: The study contributed to the justifications of SIT literature when it explored the concept of SIT in a corporate company setting - as opposed to earlier studies that used quantitative methods and experiments when exploring the concept of SIT. The study also makes a further contribution to literature by investigating SIT in an environment where functional departments are allowed to implement their own IT solutions - this was not explored by previous studies on Justification of SIT. The study also contributes to the practice where there is a need by IT management to minimise SIT by providing awareness of Neutralisation techniques which may be employed by functional departments to justify SIT. Through the understanding of the Neutralisation techniques, IT managers could make sound decisions when implementing measures to minimise SI

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

The organisational performance impact of ERP systems on selected manufacturing companies within South Africa

Preliminary investigation indicated that there is a need to determine the performance benefits that South African manufacturing firms are gaining from Enterprise Resource Planning (ERP) systems. Clarification on the factors contributing to ERP success is also required. Consequently the central research problem is: To determine the impact of ERP systems on organisational performance, by analysing achieved ERP benefits within the framework of a suitable Performance Measurement System (PMS), and to investigate an association between Critical Success Factors (CSF) and ERP benefits. By conducting a literature review a list of expected ERP benefits and CSFs is compiled. PMSs are evaluated and an appropriate model is designed for the purpose of ERP impact evaluation. The identified ERP benefits and CSFs are refined by means of a series of structured interview sessions with local ERP experts. The results of the interview sessions are built into a questionnaire, which is used in a survey within the South African manufacturing sector. The results of the study indicate that business benefits are being realised by manufacturing companies who have implemented ERP systems. By building these benefits into the chosen performance measurement model it is shown that these benefits have a positive impact on organisational performance. Although a core list of CSFs is identified, and three associations are proposed between CSFs and ERP benefits, further research is suggested to validate these findings

A sustainability reporting framework for South African Higher Education Institutions

Sustainability has gained prominence globally among nations, regions and organisations as a result of factors such as the effects of climate change on the environment, diminishing natural resources and rising population growth with their concomitant impact on economies and social systems. South Africa is a signatory to the United Nations Global Compact (UNGC) that promotes international principles and best practices on sustainable development. Sustainability Reporting is one such best practice. Sustainability Reporting is imperative for good governance and organisations are now expected to support sustainability issues, risks and performance in a balanced and reasonable way. The United Nations and other global bodies have been in the vanguard in promoting guidelines for sustainability reporting with the Global Reporting Initiative (GRI) being the most Prominent Sustainability reporting guideline. The South African Higher Education Institutions generate a number of reports in the course of any given academic year. As has been the case in the global corporate world, failures in governance in some South African universities point to weaknesses in their governance, especially when it comes to oversight of the operations of institutions. Considering this, it is important to critically examine strategic planning processes to understand the aspects that are important for the survival of Higher Education Institutions (HEIs) and therefore they should be regularly and closely monitored. The study begins by exploring literature relating to strategic planning, governance, sustainability reporting practices and Business Intelligence (BI) technologies in Higher Education. The primary objective of the investigation is to propose a sustainability reporting framework for Higher Education Institutions in South Africa. It is argued that with the aid of appropriate BI tools, the proposed Sustainability Reporting framework would be useful in tracking progress in the implementation of strategic plans and at the same time strengthen governance in institutions. The study identified elements of Sustainability Reporting that are important for strategic planning. To develop the proposed framework, an empirical investigation was undertaken. Four online questionnaires were completed and returned by 108 participants comprising of Registrars and Information Managers at 23 South African Higher Education Institutions as well as to Information Managers in selected International Higher Education Institutions and Managers at the Nelson Mandela Metropolitan University (NMMU). The online questionnaires were developed to elicit information to include in the proposed framework. To analyse results, both descriptive and inferential statistics such as Analysis of Variance (ANOVA) were used. Results from the surveys revealed that Higher Education Institutions globally and in South Africa are grappling with the same issues. When it comes to Sustainability Reporting, factors such as information culture and Business Intelligence maturity levels were not found to be very different among the various institutions. In the case study at NMMU, correlational analysis confirmed that variables such as Management buying and the availability of BI reports were positively related to effective strategic planning and vice versa. Similarly, a strong correlation was observed between reporting guidelines and strategic planning. Moreover, the study highlighted the critical role of management and leadership in a university in creating an environment that supports Sustainability Reporting. In conclusion, it was recommended that efforts should be directed at creating awareness and at training staff on aspects that promote sustainability. It is incumbent upon the institution to take advantage of and promote technological tools and techniques to enable the easy flow of data and information in understandable and usable formats to all its stakeholders. Finally, a Framework for Sustainability Reporting for Higher Education Institutions (FSRHEI) and guidelines for implementing Sustainability Reports are proposed

Evaluation of Information Systems Deployment in Libyan Oil Companies: Towards an Assessment Framework

This research work provides an explorative study of information systems deployment in two oil companies in Libya, one domestic and one foreign. It focuses on evaluation, review and assessment methodologies for information system deployment in oil companies in Libya. It also takes into consideration related issues such as information systems strategies and strategic business alignment with information systems. The study begins with an overview of information systems deployment in Libyan-based oil companies. The study thereafter reviews Libya as a business environment and provides a literature review on information systems deployment, information systems strategies and existing assessment models for information systems deployment. A case study of each company is then presented. The research investigates information systems deployment along with associated business functions in the Libyan-based oil companies chosen as case studies. Detailed analysis of information systems deployed in the company has been carried out, following a comprehensive information gathering process from the case study companies. The analysis was done using existing scholarly models which include process mapping, system portfolio analysis, Nolan’s model, Zuboff’s model, the CPIT model and the MacFarlan-Peppard model. Earl’s model and Gottschalk’s model have also been reviewed in the literature and used to provide insightful analysis of the information system strategies of the case study companies. In the concluding section of this research work, a framework is established for the assessment of information systems deployment in similar business contexts - starting from the basis of process analysis and the information systems used, considering interfaces and linkages of the information systems and the suitability of the information systems in similar business contexts. The developed framework builds on the foundation of the existing assessment models for information systems deployment. This newly developed framework presented in this study is the contribution of this research work to knowledge. The developed framework is suited to assessing information systems deployment in oil companies in Libya and can be adapted to other oil companies in developing countries