Professional Documents
Culture Documents
DOI 10.1007/s00170-011-3756-x
ORIGINAL ARTICLE
&
Received: 17 January 2011 / Accepted: 7 November 2011 / Published online: 25 February 2012
# Springer-Verlag London Limited 2012
Abstract Most of organizations have a functional structure, which is composed of various functional units. In
some cases, each functional unit works towards their own
goals and objectives, rather than the organizational goals.
This is further aggravated because information flow is
restricted by functions, and even when other functional
units want to take a systemic view, they do not have the
needed information to do so. These are the issues addressed
by Enterprise Resource Planning (ERP) software solutions providing a common and consistent system to capture
information organization-wide, with minimum redundancy.
Today, many organizations acquire and implement ERP to
improve their operational performance and create strategic
value; however, they fail to achieve these objective due to
lack of knowledge and better understanding of ERP and its
lifecycle. Although, so far, hundreds of research article are
published separately focusing on ERP and various issues
related to its lifecycle and management, there is no survey
and overview of the article published in different top-tier
journals. We believe that a survey of the articles related to
ERP provides better understanding of ERP and attempts to
create an information bank of the published articles these
in
E. Nazemi
Computer Engineering Faculty, Shahid Beheshti University,
Tehran, Iran
e-mail: nazemi@sbu.ac.ir
M. J. Tarokh (*)
Industrial Engineering Department,
K. N. Toosi University of
Technology, Tehran, Iran
e-mail: mjtarokh@kntu.ac.ir
G. R. Djavanshir
Carey Business School, Johns Hopkins University,
Baltimore, MD, USA
e-mail: rj@jhu.edu
1 Introduction
Enterprise resource planning (ERP) systems are software
packages composed of several modules, such as human
resources, sales, finance and production, providing crossorganization integration of information through embedded
business processes. These software packages can be
customized to cater for the specific needs of an organization. During the 1990s, ERP systems became the de facto
standard for replacement of legacy systems in large and
particularly multinational companies [144, 145, 221].
Regarding the significant impact of ERP systems in a
company, Chen et al. [38] state that, the success of a
company increasingly depends on timely information
(internal and external) being available to the right person
at the right time for crucial managerial decision-making,
ERP system integrates all business process and functions
enabling organizations to improve efficiency [70, 104, 157,
159, 194]. Davenport [45] states that, the business worlds
embrace of enterprise systems may in fact be the most
important development in the corporate use of information
technology in the 1990s. However, ERPs contributions
to organizations strategic value creation efforts depend on
many critical factors including its right implementation
and the effective management of its operational
performance during its lifecycle [48].
2 Definition of ERP
The term Enterprise Resource Planning is originally coined
in 1990 by The Gartner Group to describe the next
generation of MRP II software. Historically, ERP evolved
from material requirement planning (MRP) and manufacturing resource planning MRP II systems of the 1970s and
the 1980s, respectively [2]. MRP and MRP II systems were
designed to systemically link different aspects of process
information within specific business context such as
manufacturing [97]. Within the literature, different authors
have defined ERP in a different way, for example,
according to Jacobs and Bendoly [97], ERP can be defined
as a concept and as a system. Its conceptual definition
involves the integration of business processes within an
organization, with improved order management and control, accurate information on inventory, improved workflo w, a nd sup p ly ch ain m a n ag eme n t, an d b
ett e r standardization of business and best practices.
And ERP as a system is about technological infrastructure
designed to provide the required functional capability
required to turn the ERP concept into a reality. ERP
systems should not be a mere technological artifact; it is a
core platform designed to support and lever the capabilities
of the tools and processes
used by an organization [97]. ERP system is the technological manifestation of the ERP concept, its benefits,
capabilities, goals, and strategic value.
Akkermans et al. [2] also state that ERP can be defined
from different perspectives such as functional, technical, or
from business perspective that provides strategic value
encompassing the entire organizations. Tarantilis et al.
[209] define ERP as a system that integrates traditional
accounting, manufacturing, sales, management, and other
management products to offer an all-in-one solution that
deals with all business management aspects of
organizations.
100
Int J Adv Manuf Technol (2012) 61:9991018
1 1 The contributions of
Fig.
ERP system to strategic value
creation
Strategic Value
of Organization:
Extending Services
Training
Integration and testing
Customization
Change Management
Transaction Cost Economics
Data conversion
Data analysis
Consultants ad infinitum
Replacing your best and brightest
Implementation teams can never stop
Waiting for ROI
Post-ERP depression
1997
ACIS
ACM
AMCIS
ECIS
1998
1999
2000
1
6
30
28
EJOR
EMPRS
2002
HBR
23
2
1
IS/IT Journals
2
7
2005
2007
2008
2009
2010
2011
Total
2
2
1
1
10
11
75
11
47
2
3
1
4
1
1
1
1
PACIS
OTHER SOURCES
10
10
15
TOTAL
13
24
80
81
13
21
15
18
8
1
11
MIS Q
&
&
&
&
&
&
2006
ISR
1
2004
1
Journal of IT
2003
HICSS
ICIC
2001
10
69
10
42
22
16
326
Research Issues
This topic is concerned with ERP research issues and
trends. It covers such aspects as research agendas; ERP
overview, motivations and expectations; proposals on
how to analyze the strategic value of ERP systems; and
how to deal with ERP research projects (Fig. 3).
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
Organizational Knowledge
Organizational knowledge focuses on issues of
people skills, know-how, organizational processes, and
culture; that is, issues that change an organization so
that it can face a new ERP context. It covers aspects of
learning and managing competencies from a people
perspective and the identification and management of
knowledgeable artifacts from an information management perspective. Articles related to this topic include:
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
adoption decision,
acquisition,
implementation,
use and maintenance,
evolution,
retirement phase.
In the following, we describe briefly each phases.
&
&
&
&
&
&
&
&
&
&
&
Case studies constituted the largest category of publications. However, in some of them, there is no
explanation of research methodology or not enough
data to interpret some of the results presented. Most of
them lack assumptions or hypotheses (in theoretical
terms) for future studies. Therefore, more efforts should
be put in the definition and subsequent validation of
critical success factors.
The publications related to the implementation phase
were categorized into the following two main categories:
(ii) implementation approaches, (ii) and implementation
case studies.
Implementation approaches and successes This topic focuses on how to deal with an ERP implementation project.
It covers aspects such as taxonomies of ERP implementations, implementation methods and techniques, and comparisons with other software implementation projects.
Implementation success deals with the issues of how to
succeed through an ERP implementation. It covers aspects
such as ERP project success and failure definitions,
problems and outcomes, critical success factors and risk
management.
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
to determine the causes and nature of changing requirements in users requirement definition [173];
to analyze the special challenges of ERP implementations outside the business world [80, 85, 86, 186, 187];
to describe global supply chain management [36];
To examine a model that proposes various antecedents
to successful e-business change management in ERP
environments [9].
To focus on enterprise sizes and industry sectors to
compare their difference on enterprise resource planning (ERP) implementation development, package
selection, and user satisfaction in Taiwan [222, 223].
They show a survey, using the measurement
instrument,
of
two representative samples of large size enterprise
vs. medium size enterprise and electronics & science
industry vs. traditional industry is conducted to
investigate different ERP implementation patterns and
outcomes. A comparative analysis of ERP implementation rate, package selection, and user satisfaction based
on business-related factors is performed.
&
&
&
Tarantilis et al. [209] recommend the benefits a Webbased and application of ERP for managing real-world
distributed business processes.
Ash and Burn [10] provide a strategic framework for
the management of ERP enabled e- business. They also
emphasize the critical role of change management in
applying ERP technology to e-business.
Ranganathan and Brown [155] discuss the values and
benefits of investments in ERP to businesses. They
argue that ERP projects with greater functional scope
(two or more value-chain) or greater physical scope
(multiple sites) result in positive, higher shareholder
return.
Bhargava and Choudhary [14] discuss the economic
benefits of information intermediary (info-mediary) to
businesses. ERP can be used in info-mediary design
that facilitates establishment of a buyer-seller
agreement
and
value-added services that provide enhanced
benefits
from
matching services.
101
Int J Adv Manuf Technol (2012) 61:9991018
1
&
&
&
&
&
&
&
&
&
&
&
&
Holland et al. [91] present a framework for understanding the process and content of the development of the
maturity of ERP systems in organizations.
Ming et al. [126] presented a decentralized mechanism
design for supply chain management organizations
using an auction market. ERP adds value by improving
the coherence and integrating the needed information in
decision making process.
Shang [182] presents a framework that tries to classify
the types of benefit that organizations can achieve by
using ERP systems and provides a comprehensive
foundation for planning, justifying, and managing the
system.
Pozzebon [152] identifies the factors affecting ERP
usage, combining a structural perspective with a
behavioral-based model.
Kelley et al. [98] analyze the individuals reactions to
ERP technology and subsequent behaviors through the
combination of Self-Efficacy Theory and Attribution
Theory.
Poston and Grabski [151] present a study on the impact
of ERP systems on a firms performance.
Askens and Westelius [11] show how a set of roles of
an ERP system (viewed as an IS) form a vocabulary for
discussing the role played by the ERP system in
relation to its users.
Stijn and Wijnhoven [204] apply the systematic
analysis method of memory mismatches (SAMMM)
to ERP systems in the usage stage and identify the
methods theoretical and practical value and its
limitations.
Granlund and Malmi [74] and Connellan and Howard
[41] analyze the effects of ERP systems on management
accounting and management work, especially whether
ERP systems alleviate or limit the benefit gained from
management accounting systems for organizational
decision-making and control.
Fahy and Lynch [54] examine the impact of ERP
systems on organizations and, in particular, on the
management accounting functions of large organizations that implemented ERP systems.
Stamper [199] points out the limitations of current ERP
systems and introduces the principles on which the second
generation could be built to achieve massive reductions in
development, support, and maintenance costs.
Glass and Vessey [72] analyze the maintenance and
enhancement tasks of ERP systems, trying to determine
whether ERP maintenance follows the 60/60 rule (i.e.,
approximately 60% of the cost of an information system
is maintenance and approximately 60% of that maintenance is enhancement) and whether user-driven ERP
system enhancement is treated the same way it is for
traditional IS.
&
&
&
&
&
&
Loo [115] proposes the implementation of an information technology service management capability to help
in the management of information technology
associated
with
the ERP solution implemented.
Rosemann and Wiese [164] propose the evaluation of
ERP software usage through a balanced scorecard
approach.
Eriksen et al. [50] propose exploring the advantages of
competence centers to support and maintain ERP
systems.
Kremers and Dissel [2000] discuss the motives and
inhibitors for migrating ERP to a new version of the
system, considered from the provider and customer
viewpoint.
Doppelhammer et al. [49] study the database performance of SAP R/3 using a standard benchmark for
decision support queries in business environments,
named TPC-D.
Riet et al. [158] study how ERP systems deal with
security.
&
&
&
&
&
&
&
&
&
&
6 Conclusion
The number of publications within the information systems
community on ERP systems appears small compared to the
size of the business they generated. The publications
identified in this paper originate from a small number of
sources and are quite recent. All major IS conferences and
Journals since in 1997 dedicated at least a track or minitrack to ERP systems.
This study shows that ERP researcher mainly concentrated on issues related to the in implementation phase of
the ERP lifecycle. Until now, the other phases have been
almost forgotten. One of the reasons is that the majority of
organizations are in the implementation phase. Also, in
References
1. Abdinnour-Helm S, Lengnick-Hall ML, Lengnick CA (2003)
Pre-implementation attitudes and organizational readiness for
implementing an Enterprise Resource Planning System. Eur J
Oper Res 146(2):258273
2. Akkermans HA, Bogerd P, Yucesan E (2003) The Impact of
ERP on supply chain management: Exploratory findings from a
European Dephi study. Eur J Oper Res 146(2003):284301
3. Adam F, ODoherty P (2000) Lessons from Enterprise Resource
Planning Implementation in Ireland - Towards Smaller and
Shorter ERP Projects. J Inf Technol 15(4):305316
4. Allen L (2000) Researchable Directions for ERP and other New
Information Technologies. MIS Q 24(1):17
5. Al-Mashari M (2000) "Constructs of process change management in ERP context: a focus on SAP R/3". Americas
Conference on Information Systems AMCIS, K., USA
6. Al-Mashari M, Al-Mudimigh A, Zairi M (2003) Enterprise
Resource Planning: A taxonomy of critical factors. Eur J Oper
Res 146(2):352364
7. Alvarez R (2000) "Examining an ERP implementation through
myths: a case study of a large public organization". Americas
Conference on Information Systems AMCIS, K., USA
8. Amin N, Hinton M, Hall P, Newton M, Kayae R (1999) "A
study of strategic and decision-making issues in adoption of
ERP systems resulting from a merger in the financial services
sector".
1 International Workshop on Enterprise Management Resource
and Planning Systems EMRPS, Venice, Italy, 173181
9. Ash C (2000) "e-Business change and personnel performance: a
case study of an ERP enabled organization". 10th Annual BIT
conference, Manchester, UK. November (2000)
10. Ash CG, Burn JM (2003) Strategic framework for the management of ERP enabled e-business. Eur J Oper Res 146(2):374
387
11. Askens L, Westelius A (2000) "Five roles of an information
system: a social constructionist approach to analyzing the use of
ERP systems". International Conference on Information Systems
ICIS, Brisbane, Australia
12. Assogna P (1999) "Supply chain networks and fractals: a
modeling opportunity". 1 International Workshop on Enterprise