ERP Systems and Managerial Decision Making - A Model for Analysis

Implementing Enterprise Resource Planning (ERP) systems, the most significant IT development in recent times, affects all aspects of organizational life. While the positive impact of ERP systems on operational efficiencies is well established in the literature, the relationship between ERP systems, decision support capability and decision-making processes has been inadequately investigated in the past. This paper hypothesizes a research model for further investigation. Using standardization and integration, the two key characteristics of ERP systems, the influence of ERP-enabled information environment is explained in terms of its impact on the accessibility/availability, quality and quantity of information. The extent of integration and standardization achieved while implementing the ERP system and organizational culture and size are moderating variables that are expected to moderate the influence of ERP-enabled environment on managerial decision making. Extending recent studies, this study postulates a positive influence of ERP-enabled information environment on decision support capability particularly at operational and tactical level. Though improvement in the quality of information, centralization and the consequent increase in visibility and accessibility have influenced the decision support capability of managers, factors such as information overload and inadequate reporting tools in the ERP software appear to be limiting the managerial decision making capability and quality of decision making

Do Enterprise Systems Enable Supply Chain Integration?

Features of ERP systems such as standardized business processes, data integrity, real-time availability, visibility and processing capability of information are expected to create an excellent backdrop for embarking on integration with external partners in the supply chain. This paper reports on the enabling role of ERP systems in achieving supply chain integration from an interpretive case study analysis. Study observed that the organization is slow in embarking on changes to the inter-enterprise processes and not taking full advantage of the high potential. Reasons noted for constraining role of ERP systems in achieving an effective supply chain integration are changes in power and organizational structures, inadequate integration of internal processes, limited flexibility of processes, lack of decision support capability of the ERP system, and general inertia for further changes consequent to ERP implementation. In addition other factors such as supply chain partners inability to take a holistic view, complexity of developing technology interfaces, industry characteristics, and lack of information technology sophistication of the smaller partners are also limiting the potential

ABC Diffusion in the Age of Digital Economy: the UK Experience

Since the beginning of the 21st century, there has been a call for further research to trace the effects of the speedy changes in business environment on management accounting practices. This study assesses the impact of different information technologies on ABC adoption and implementation. It uses a cross-sectional survey of financial directors and controllers in the UK firms. Postal and electronic questionnaires have been used in order to collect the empirical data. The findings revealed that the rate of ABC adoption has shown a number of changes between 1999 and 2005. The proportions of ABC users and those currently assessing it have dramatically fallen. The percentage of firms rejecting ABC has slightly fallen as well. However, there has been a considerable increase in the number of firms that abandoned ABC implementation and those firms that gave no consideration for its implementation. These results indicate a decrease in the popularity of ABC. ERP systems seem to have a slightly low significant impact on the initial decision of ABC adoption in those firms that do not have any consideration for ABC and firms that have an ERP system before ABC adoption. Furthermore, the results indicate that firms use different information technologies in the ABC assessment and implementation. For ABC assessment, general software applications are the most preferable software packages while a mix of different ABC software packages is the most popular in the case of ABC implementation. Finally, the findings of this study provide an indication on the nature of the possible effect of general IT-related problems on ABC implementation

Reasons behind ERP package adoption: a diffusion of innovations perspective

Enterprise Resource Planning (ERP) packages have been widely adopted and it is becoming clear that this is driven by multiple rationales that may be simultaneously at odds and complimentary. In this paper, we aim to develop a greater understanding of these rationales by taking ERP packages to be innovations and analysing their adoption with reference to the theory of diffusion of innovations. In particular, we consider the attributes of ERP packages that may affect their adoption such as relative advantage, compatibility, complexiblity, trialability and observability. We argue that users’ perceptions of these attributes are not always accurate and these ’misconceptions’ can further explain reasons for ERP adoption or rejection. Although our analysis aims to provide rich insights into the adoption of ERP packages, the results of the study are arguably of further interest to the more general study of packaged software and the more established literature on custom development

Goals/questions/metrics method and SAP implementation projects

During the last years some researchers have studied the critical success factors (CSFs) in ERP implementations. However, until now, no one has studied how these CSFs should be put in practice to help organizations achieve success in ERP implementations. This technical research report attempts to define the usage of Goals/Questions/Metrics (GQM) approach in the definition of a measurement system for ERP implementation projects. GQM approach is a mechanism for defining and interpreting operational, measurable goals. Lately, because of its intuitive nature the approach has gained widespread appeal. We present a metrics overview and a description of GQM approach. Then we provide an example of GQM application for monitoring sustained management support in ERP implementations. Sustained management support is the most cited critical success factor in ERP implementation projects.Postprint (published version

SMEs: ERP or virtual collaboration teams

Small firms are indeed the engines of global economic growth. Small and Medium Enterprises (SMEs) play an important role to promote economic development. SMEs in the beginning of implementing new technologies always face capital shortage and need technological assistance. Available ERP systems do not fulfil the specific requirements of Small firms. SMEs has scarce resources and manpower therefore many SMEs don?t have the possessions to buy and operate an ERP System. On the other hand competition and competitiveness of SMEs have to be strengthened. This paper briefly reviews the existing perspectives on virtual teams and their effect on SMEs management. It also discusses the main characteristics of virtual teams and clarifies the differences aspects of virtual team application in SMEs. After outlining some of the main advantages and pitfall of such teams, it concentrates on comparing of ERP and virtual collaborative teams in SMEs. Finally, it provides evidence for the need of ?Software as a Service (SaaS)? where an application is hosted as a service provided to customers across the web for SMEs as an alternative of ERP. It has been widely argued that ERP disadvantage in SMEs such as administrative expenditure and cost, isolated structure, severe lack of software flexibility, insufficient support of SMEs business and high operating cost, lead SMEs to use virtual collaborative team which is net work base solution

The impact of enterprise application integration on information system lifecycles

Information systems (IS) have become the organisational fabric for intra-and inter-organisational collaboration in business. As a result, there is mounting pressure from customers and suppliers for a direct move away from disparate systems operating in parallel towards a more common shared architecture. In part, this has been achieved through the emergence of new technology that is being packaged into a portfolio of technologies known as enterprise application integration (EAI). Its emergence however, is presenting investment decision-makers charged with the evaluation of IS with an interesting challenge. The integration of IS in-line with the needs of the business is extending their identity and lifecycle, making it difficult to evaluate the full impact of the system as it has no definitive start and/or end. Indeed, the argument presented in this paper is that traditional life cycle models are changing as a result of technologies that support their integration with other systems. In this paper, the need for a better understanding of EAI and its impact on IS lifecycles are discussed and a classification framework proposed.Engineering and Physical Sciences Research Council (EPSRC) Grant Ref: (GR/R08025) and Australian Research Council (DP0344682)

Exploring the relationship between knowledge management and organizational learning via fuzzy cognitive mapping

The normative literature within the field of Knowledge Management has tended to concentrate on techniques and methodologies for codifying knowledge. Similarly, the literature on organizational learning, focuses on aspects of those knowledge that are pertinent at the macro-organizational level (i.e. the overall business). There remains little published literature on how knowledge management and organizational learning are interrelated within business scenarios. In addressing this relative void, the authors of this paper present a model that highlights the factors for such an inter-relationship, which are extrapolated from a manufacturing organisation using a qualitative case study research strategy, supplanted by a cognitive mapping technique: Fuzzy Cognitive Mapping (FCM). The paper looks at the Information Systems Evaluation (ISE) process within a manufacturing organisation, the authors subsequently presenting a model that not only defines a relationship between KM and OL, but highlights factors that could lead a firm to develop itself towards a learning organisation