Enterprise Resource Planning Systems
Introduction
Enterprise resource planning systems (ERP) are hardware/software packages which can be configured for a specific organisation. SAP and Oracle are the best known examples of companies providing these systems which are aimed primarily at manufacturing based organisations, but not exclusively. The implementation of enterprise planning systems can involve very large-scale projects with budgets in excess of $10 million. ERP are increasing prevalent – most of the Fortune 500 companies have or are in the process of implementing these systems. Companies believe that ERP enable them to resolve several information systems problems at once. These systems replace legacy systems which are expensive to maintain, they standardise a company’s software and hardware architectures which will reduce costs; they obtain current ‘best business’ practice encapsulated in the ERP; they are able to create standard business processes across their organisations. In some cases, such as Dow Corning and Gearbox, ERP can be used across global organizations.
Bibliography
Listed below are some key papers to help inform your diagnosis of the problems at Gearbox. At a minimum, you should consult two or three of these:
Avison, D. Malaurent, J (2007). Impact of cultural differences: A case study of ERP introduction in China. International Journal of Information Management, 27(5), 368
Chien, S.W., et al., (2007). The influence of centrifugal and centripetal forces on ERP project success in small and medium-sized enterprises in China and Taiwan. International Journal of Production Economics, 107 (2), 380–396.
Ifinedo, P. and Nahar, N., (2007). ERP system success: an empirical analysis of how two organizational stakeholder groups prioritize and evaluate relevant measures. Enterprise Information Systems, 1 (1), 25–48.
Momoh, A. Roy, R Shehab, E (2010) Challenges in enterprise resource planning implementation: state-of-the-art, Business Process Management Journal, Vol. 16 Iss: 4, pp.537 – 565
Newman, M Zhao, Y. (2008). The process of enterprise resource planning implementation and business process re-engineering: tales from two Chinese small and medium-sized enterprises. Information Systems Journal, 18(4), 405-426.
Sheu, C. Chae B and Chen-Lung Y (2004) National differences and ERP implementation: issues and challenges Omega, 32 (5) 361-371.
Xue, Y. Huigang Liang, William R. Boulton and Charles A. Snyder (2005) ERP implementation failures in China: Case studies with implications for ERP vendors International Journal of Production Economics, 97,( 3), Pages 279-295
Zaglago, L., Apulu, I., Chapman, C., & Shah, H. (2013). The Impact of Culture in Enterprise Resource Planning System Implementation. In Proceedings of the World Congress on Engineering (Vol. 1). Available at: http://www.iaeng.org/publication/WCE2013/WCE2013_pp516-521.pdf last accessed February 2014.
Zhang, Z, Matthew K.O. Lee, Pei Huang, Liang Zhang and Xiaoyuan Huang (2005) A framework of ERP systems implementation success in China: An empirical study International Journal of Production Economics 98 (1) 56-80
Also check WWW resources (various) for ERP sites such as SAP/Oracle.
QUESTIONS FOR CLASS DISCUSSION AND STUDENT PRESENTATION:
1. . Is the current level of system use sufficient to enable continued growth at 100% per year?
2 . You have just been asked to become the successor of the current:
i) Managing director
ii) Finance manager
What would you do to extend system use?