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1Int J Adv Manuf Technol (2012) 61:9991018

Int J Adv Manuf Technol (2012) 61:9991018

DOI 10.1007/s00170-011-3756-x

ORIGINAL ARTICLE

ERP: a literature survey


Eslam Nazemi & Mohammad Jafar Tarokh
G. Reza Djavanshir

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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

turn, contribute to improving the performance of an


enterprise in terms of achieving its strategic value creation
goals. In this study, we attempt to summarize our survey
and review of the articles related to ERP.
Keywords Enterprise resource planning . ERP performance
measurement . ERP success factors . Strategic value

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].

In the literature, there is a considerable volume of


research focused on the specific issues of ERP; however,
there are no consensus on the definition and the issues
related to ERP. According to Jacobs and Bendoly [97],
Enterprise resource planning (ERP) has come to mean
many things over last several decades. Divergent applications by practitioners and academics, as well as by
researchers in alternative fields of studies, has allowed for
considerable proliferation on the topic and for a considerable confusion regarding the meaning of the term.
Additionally, successful implementation and effective
man- agement of ERPs operational performance during its
life cycle is still a major problem in todays organizations
[138]. Therefore, researchers argue the need for more
ERP research [63, 64, 77, 97]. We provide herein, a
survey of the literature on ERP and its implementation,
operational performance, and other issues related to its
lifecycle.
This study provides a survey of literature on ERP
published in the major information systems, related
journals, and conference proceedings during the period
19972010. It categorizes them through an ERP life cyclebased framework that is structured in phases. Originally,
this bibliography started as an extension of the one
developed by Gable and Rosemann [66], which focused
on ERP and measurements of ERP. We extended their
bibliography with a significant number of new publications
in all the categories used in this paper.

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.

3 Contribution of ERP to strategic value creation


Firms are spending large sums of money on information
systems, but the benefits of spending on information
systems are expected to have strategic values [77]. In
todays dynamic economy, continuously generating new
knowledge, combined with operational efficiency and
effective delivery mechanisms increase the strategic value
of a firm [17, 73, 153, 168, 170, 202]. As shown in Fig. 1, a
firm must first have the three fundamental value generators
(drivers) in place that are critical to a firm to create
sustainable strategic value. The combination of new
knowledge creation with at least one of the two other value
generators is fundamental to a firms sustainable competitiveness. These matches the two-stage value creation model
that is suggested and described by Gobeli et al. [73] to
create sustainable firm value. Figure 1 also shows that ERP
system, if planned, deployed, and implemented properly,
acts as a value enhancer that empowers all these three value
generators (process and operational efficiencies, information delivery, and new knowledge creation activities) that
in turn contribute to the strategic value creation in a firm [57,
61].
The proper planning and implementation of ERP is
necessary to enhance the strategic values of an organization
[13, 15, 18, 73]; otherwise, it may create unintended
consequences. The proper planning, implementation, and
deployment of ERP systems are among the critical factors
that many scholar point out about the success of ERP [68,
97, 193, 217].
Jacobs and Bendoly [97] points out that ERP should not
simply be viewed as a technological artifact that assists
organizations in fulfilling their tasks or as a productivity
tool with a fixed output, rather it should be considered as a
critical technological infrastructure that enhances the
capabilities of all other tools and processes.
Similar to planning of any information systems, in
planning to acquire ERP systems, a firm should address
many questions, including the following basic questions:
Why does it need an ERP system? How do the ERP
systems contribute to organizational efficiency? How long

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:

Int J Adv Manuf Technol (2012) 61:9991018


100
New Products, Services, and Process Innovations, Differentiations, 1
Cost Advantages,
Sustainable Competitive Advantage- Unique outcomes that clients

Efficient Processes &


Organizational Operations

Value Generators (Drivers):

Value Enhancer (s):

will its implementation take and when is the break-event


point? How much does it really cost and what are its hidden
costs? How do a firms emerging business activities, such
as e-commerce, benefit from the ERP system? And other
questions that a firm deem them to be critical to their
business.
We will try to provide some basic answers to some of
these questions in the following paragraphs.
Why does a firm need an ERP system? There are five
major reasons why companies undertake ERP project:
1.
2.
3.
4.
5.

Standardize and speed up processes


Standardize HR information
Integrate financial information
Integrate customer order information
Reduce inventory

It is obvious that an ERP system contribution should be


aligned with their ways of conducting business, before its
acquisition, implementation, and deployment begin. The
most common reason that companies abandon
multimillion- dollar ERP projects is that they discover that
the system does not support one of their important
business processes, or they see no linkages between the
benefits of an ERP system and their ways of doing
business [21, 23]. At that point, they may make two
decisions: They can customize the system to fit the process
and accommodate it; this may introduce excruciating bugs
into the system. Because the customizations may need to
torn apart and rewrite the system to fit it with the
business process, they can change the business process to
accommodate the system, which may mean deep changes
in long-established ways of doing business and
reorganize important peoples roles and respon- sibilities
[26]. However, according to Jacobs and Bendoly [97],
any redesign and changes of a business process that the

New Knowledge generation


Improved capabilities

Effective Transaction Processing

Extending Services

& Information Delivery

Infrastructure Technology: ERP System

system planned to support should not be carried out with


the intent of supporting the planned system. Rather, any
process redesign should involve the implementation of best
practices that are supported by the planned system so that
they provide systemic improvement for the firms
performance as a while [28, 29].
How does an ERP system contribute to organizational
efficiency? ERP systems contribute to operational and
delivery efficiency in many ways including its critical role
in improving the way a firm takes customer orders and
processes them into invoices; this process is also known as
the order fulfilment.
How does ERP fit with e-commerce? ERP offers a
tremendous value to e-commerce firms performance
[224]. However, vendors were not prepared for the
onslaught of e-commerce. ERP is a complex system and
not intended for public consumption. It assumes that the
only people handling order information will be trained
employees and are comfortable with the technical complexities of the system. However, customers and suppliers
are demanding access to the same information such as order
status, inventory levels and invoice reconciliationexcept
if they want to get all this information simply, without all
the ERP software jargon, through the firms website.
How long will an ERP project take? To do an ERP project
right, its deployment, implementation and use should fit the
way that the organization conduct its business. According
to Akkermans et al. [2] and Prahalad and Krishnan [155],
depending on the size of a firm implementation of an ERP
project, ERP takes anywhere between 12 and 30 months.
However, ERP provides a critical technological
infrastructure

to firms; therefore, a more important issue is not how long


it will take; rather, firms need to understand why it needs
ERP, what are its costs, particularly hidden costs and its
benefits, and how it will be used to create strategic values.
What does ERP really cost and when is the break-even
point? Meta Group did a study looking at the total cost of
ownership (TCO) of
ERP,
including hardware,
software, professional services, training, and internal staff
costs. The TCO numbers include getting the software
installed and the two years afterward, which is when
the real costs of maintaining, upgrading and optimizing
the system for the firms business are felt. Among the 63
companies surveyed including small, medium and large
companies in a range of industriesthe average TCO was
$15 million (the highest was $300 million and lowest was
$400,000). While its hard to draw a solid number from that
kind of range of companies and ERP efforts, Meta came up
with one statistic that proves that ERP is expensive no
matter what kind of firm is using it. The TCO for a
"heads-down" user over that period was a staggering
$53,320.
A Meta Group study of 63 companies found that it took
eight months after the new system was in (31 months total)
to see any benefits. However, the median annual savings
from the new ERP system were $1.6 million.
What are the hidden costs of ERP? Although different
firms will find different issues in the budgeting process,
those that have implemented ERP packages agree that
certain costs are more commonly overlooked or underestimated than others. Armed with insights from across the
business, ERP pros vote the following areas as most likely
to result in budget overrun.
&
&
&
&
&
&
&
&
&
&
&
&

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

on articles published in major scholarly journals and


conferences proceedings over that past 11 years (1997
2010). The journals surveyed were:
ACM
CAIS
DSS
EJIS
EJOR
HBR
IJIM
ISJ
ISR
JGIM
JIT
MISQ

Association for Computing Machinery


Communications of the Association for
Information systems
Decision Support Systems Journal
European Journal of Information Systems
European Journal of Operational Research
Harvard Business Review
International Journal of Information Management
Information Systems Journal
Information Systems Research
Journal of Global Information Management
Journal of Information Technology
Management Information Systems Quarterly

The academic conferences and events surveyed were:


ACIS
AMCIS
ECIS
EMRPS
HICSS
ICIS
IRIS
PACIS
IIEC

Australasian Conference on Information


Systems
Americas Conference on Information Systems
European Conference on Information Systems
Enterprise Management and Resource Planning:
Methods, Tools and Architectures
Hawaii International Conference on Systems
Science
International Conference on Information
Systems
Information Systems Research Seminar In
Scandinavia
Pacific Asia Conference on Information Systems
Iran Industrial Engineering Conference

The search was made using keywords such as


enterprise resource planning, enterprise resource planning
performance enterprise wide systems, enterprise systems
measurement,
or
software
packages and the main ERP vendors such as
SAP,
Oracle, Baan, Peoplesoft, and JD Edwards.
Publications
during the period 1997December 2010 were analyzed.
Tablethe
1 number of publications identified from IS
lists
journals
and
conference proceedings. We also included
relevantfrom other scientific publications we found
articles
during
the
collection process. During 1997 and December
2010, all the information systems conferences mentioned
nearly
in
Table
1 dedicated panels to the subject, AMCIS [140],
ECIS ACIS [139] as well as the ICIS [137].
[141],

5 ERP bbiliography analysis


4 Research methodology and survey approach
The research methodology used in this study is the review
of literature on ERP. The focus of the literature review was

After we collected all the publications, they were analyzed


and categorized using a simplified version of the ERP
lifecycle framework proposed by Esteves and Pastor [51].
One of the ways to analyze qualitative data is to use a

Table 1 ERP publications at selected international IS Conferences 1997-2011


Is/It source

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

5.1 General directions


Main topics researched ERP systems overview, their
expectations and motivations are well-covered subjects in
the publications found. Recently, some researchers focused
on knowledge management concerns and applied knowledge theories in the ERP context. Few issues are addressed
in terms of performance measurements and business
modeling and how modeling can be improved [48, 52, 70,
78]. Our review of the literature shows that development of
ERP products centered mainly in technological issues.
We also categorized the publications on ERP issues not
related to ERP lifecycle phases into six main topics (Fig.
2):
research issues,
organizational knowledge,
business modeling,
ERP product development issues and
ERP and business intelligence
ERP performance modeling

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15

18

classification system that includes a quest for regularity and


standards, as well as topics encompassed by the data. The
classifications must then be summarized by words or
phrases [27]. We used this process to analyze and
categorize the publications found.
The ERP lifecycle (Section, Esteves and Pastor [51])
represents the various phases through which an ERP
system project passes in an organization. The ERP
lifecycle is structured in dimensions and phases, generic
enough to permit the classification of publications and
comprehensive enough to give a general vision of the
whole ERP lifecycle.

8
1

11

MIS Q

&
&
&
&
&
&

2006

ISR
1

2004
1

Journal of IT

2003

HICSS
ICIC

2001

10

69

10

42

22

16

326

We discuss each of these topics in the next section.


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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).

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Liang et al. [109] suggest that research and studies


could be carried out based on comprehensive data
collected globally from a large sample of vendors in
difficult parts of the globe to study the
assimilation of ERP systems, the article effects of
institutional pressures, and role of top management
during the assimilation process.

Fig. 2 Number of publications by category

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Fig. 3 No of articles not related to lifecycle issues

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They are commends that future research can be


conducted to study the way institutional pressures
interact with top managements learning related
con- structs to affect ERP assimilation processes.
Jacob and Bendoly [97] argue that ERP means different
things to different researchers, and practitioners in
terms of its applications. They also discuss the
current research steams on ERP, its operations
management and provide some suggestions on for
related future research. Finally, in their paper, they
discuss the fundamental corporate capabilities required
for success- ful implementation of ERP systems.
Allen [4] provides his observations on current
research and studies carried out on ERP and
information economics, ERP development and he
provides research- able directions for ERP systems
development and its impacts on organizations.
The research issues and overviews of ERP systems are
analyzed and research agendas proposed in Esteves and
Pastor [51] and Mini-Panel [127].
David et al. [46] argue that research in the ERP area
must not proceed haphazardly; rather we must develop
a systematic means for identifying the patterns underlying these systems and for comparing the symbolic
abstractions to find differences in functions, processes,
information architecture, and organization.
Holsapple and Sena [93] identified the integration of
ERP and decision support systems for further research
and development.
Sor [195] suggests that a better understanding of issues
surrounding ERP systems could be achieved by moving
the discourse towards management theory and dealing
with ERP systems as special cases of theoretical
premises that were developed in the 1960s.
Oliver and Romm [135] discuss the behavioral
subjects related to ERP systems deployment, operations, and its use. Specifically, they discuss in issues
such as the motivations and expectations about ERP
systems.

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Chang et al. [35] summarize a set of research issues


about public sector ERP implementations and developed by using the Delphi method.
Ross and Vitale [162] present the preliminary findings
from a research project that examined how firms are
generating business value from their investments in
ERP systems.
Kumar and Hillergersberg [106] present a general
overview of ERP systems, some ERP experiences, and
issues and their evolution. The article is very helpful in
providing not only a general overview of the ERP
systems, but also how the firms application areas,
expectations, experience change during ERP systems
functional operations in the firms.
Everdingen et al. [53] analyze ERP adoption by
European midsize companies.
Markus and Tanis [119] provide a theoretical
framework for analyzing, both retrospectively and
prospectively, the business value of enterprise systems.
Esteves and Pastor [52], Muscatello et al. [129],
Holland et al. [88], Holland and Light [90], Panel
[141], Parr et al. [143], Scheer and Habermann [177],
Shanks et al. [183], Sumner [206, 207, 208] and Vikram
et al. [216] provide some case studies and offers that
most of the information about the failures and successes
and risks are based on reports on implementations in
large manufacturing and service organizations.
However, enterprise resource planning vendors are now
steadily turning their marketing sights on small and
medium- sized manufacturers. The research focuses on
implemen- tation activities that foster successful
installations and are developed. Articles related to this
topic include:

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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:

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Liang et al. [109] studied a model that facilitates the


diffusion and assimilation process of ERP within
organizations. Their model explains the role of top
managements in mediating the impacts of external
institutional pressures on the effective use of ERP
within organizations [214].
Gattiker and Goodhue [68] present a model that
demonstrates a better fit between ERP systems and its
organizational context. They suggest that, according to
organizational information process theory the performance is, influenced by the level of fit between

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information processing mechanisms and organizational


context. Two important elements of this context are
interdependence and integration among subunits of
organizations. Because ERP systems include data and
process integration, the theory suggests that ERP will
be relatively better fit when interdependence is high and
differentiation is low.
Sirkka et al. [188] in a seminal article examine the
critical role of trust in information technology-enabled
relation- ships. ERP is a member of information
technology; therefore, their paper also provides an
insight on migrating the cultural resistance to
organizational learning, trust, and assimilation process of
ERP within organization.
Ronca [160] considers the need of investing in
organizational knowledge and change management for
an enterprise to be successful in adopting ERP.
Taxen [212] proposes a strategy for organizational
knowledge evolution and describes how it can be
applied in the ERP system context.
Eliciting information about organizational culture via
laddering in ERP environments is discussed by Rugg et
al. [171]. This is article provides useful insights in
minimizing the cultural inertias that may prevent the
better alignment of ERP within organizations.
Gable et al. [65] develop a research project about the
means to understand the extent of the ERP knowledge
among the key players- (vendors, implementers, partners, and clients) and to understand better what these
three key players can do with ERP knowledge.
Al-Mashari [5] explores the ERP phenomenon from a
business process and change management perspectives.
The article provides the relationship between ERP
systems and business process redesign. Finally, the
author provides useful recommendations along with
several ideas for future research.
Rosemann and Chan [166, 167] propose a framework
which structures the knowledge required to manage
enterprise systems. They suggest how knowledge can
be modeled in the enterprise systems context to identify
what is relevant during different stages of an enterprise
systems project.
Hedman [82] presents a competing value approach
enterprise systems (CES) framework to discuss
enterprise systems from an organizational effectiveness
perspective.
Finally, Klaus and Gable [100] and Scott and
Gable [179], attempt to relate the deployment and use
of ERP systems to knowledge management. The
article also explores the knowledge of knowledge
management held by senior managers who are
immersed in ERP systems.
Business Modeling
The objective of the business modeling process is to
help an organization to define an effective business

vision and strategies that will reduce the effort involved


in adopting the ERP business model. It helps organizations to understand, manage, and communicate their
business processes. It covers aspects such as usage of
modeling tools applied in ERP contexts, new business
modeling approaches, and comparisons between processes [63, 64, 77, 97, 112, 114, 196]. Articles related
to this topic include:
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McAfee and Brynjolfsson [122] discuss the roles of


modern technologies such as ERP on creating strategic
values for their firms and competitive advantage in the
market. They provide an insight into creating effective
business models by making ERP and other technologies
as an integral part of their organizational model.
Konstantas et al. [103] propose the active business
objects (ABOs) as a new paradigm to build information
systems for businesses.
The ABO project aims at the design and development
of an agent platform where mobile agents represent
business processes. The agents encapsulate the policies,
business practices and models of different business
activities.
Stirna [205] analyzes the acquisition of Enterprise
Modeling tools. He also outlines a number of
situational factors to be considered by organizations
when choosing among enterprise modeling tool
acquisition strategies.
Formica and Pizzicannella [58] discuss a new
approach for high-level enterprise modeling referred to
as reification. The approach is based on the reification
of the business processes of an enterprise, that is, their
representation as static entities by using the objectoriented paradigm.
Wagner [219] shows that enterprise and business
process modeling could greatly benefit from agentoriented approach, called Agent-Object-Relationship
(AOR) modeling.

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ERP Product Development Issues


This topic is related with the first-hand development
and manufacturing of ERP products. It covers aspects
such as: new modules, interfaces, componentization,
increased flexibility, and introduction of new emerging
technologies and platforms [62, 67, 71, 75, 81, 92,
117]. Articles related to this topic include:

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Chen et al. [38] provide heuristics for selecting robust


database structures with dynamic query patterns. They
suggest the usefulness of creating database of the core
component of ERP that integrates and supports all
business processes.
Hagel and Brown [79] and Caglio and Newman [33]
discuss the potential problems in ERP architecture that
may lock companies into rigid and inflexible business
processes. Therefore, they recommend a new approach
based on the Web service architecture.

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Sutcliffe [211] proposes a framework for engineering


reusable components that serves two purposes. First, it
can help designers think by making design trade-off
explicit. Second, it proposes a cost driven evaluation of
reusable components that can inform decision making
during reuse oriented development.
Frank [59] uses research within extended transaction
models, replication methods, and countermeasures
against the missing isolation property in order to
illustrate how to design distributed ERP systems with
high performance and availability.
[34, 101] propose architecture for e-Business that
extends ERP-centric architectures to address the new
challenges of business networking.
Platner [149] and Avital and Vandenbosch [13]
describes the SAP R/3 software development
process and the possibilities R/3 offers for
"configuration to order". Sprott [197] describes how
the componentization of ERP packages is likely to
evolve.
Fan et al. [55] discuss the design methodologies for
component-based enterprise systems architectures
development.
Huang [94] analyzes the influence of customer requirements in the ERP software development process.
Loos [116] focuses on future development of ERP
systems, emphasizing technical aspects of information
technology application as enabler.
Sato [176] introduces quick iterative process prototyping methodology for the analysis and design of business
process dynamic properties.
Chellappa and Saraf [37] adopt a framework called
network theory to represent the complexity of the ERP
market. With this framework, authors relate alliances
formation by business application software firms and
compatibility issues.
Kobryn [102] analyzes the requirements of enterprise
software architectures and examines the UML constructs and techniques to specify them.
A historical perspective has been taken by Chung and
Synder [39] and Kelly et al. [99] who, from different
contexts, emphasize the maturing of IS towards an
unambiguous business focus, as attributed to ERP
systems.
Other traditional approaches in systems development
proved to be less beneficial in the long-term than ERP
systems [32, 87].
ERP and Business Intelligence
David C. Chou and Hima Bindu Tripuramallu [47],
introduce BI and ERP integration. They believe BI
tools can be used to generate various aspects of
business views through manipulating existing data
captured by companys information systems. BI can be
used for any

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organization to structure its ERP information and other


data repositories, for fast and effective decisionTurban E., and et al. [210], describe the road map of
access
to Business Intelligence with Managerial Approach.
ERP performance modeling
This topic is concerned with ERP performance
measurements and some modeling approaches for
measuring the performance of ERP and Total Systems
[78, 105]. It covers such aspects as customer satisfaction, performance measurement and models of productivity and introduction of new approach to develop a
model for performance measuring from single view.
Gunasekaran et al. [77] have identified a set of
performance metrics that are helpful to ERP projects.
They suggest that particular considerations should be
given to how an organization at strategic, tactical, and
operational performance levels can benefit from a
critical information system such as ERP.
Cotteleer and Bendoly [42] present an empirical study
that investigates the influence of enterprise systems
implementation on operational performance. Their
study suggests that performance along a key metric
motivating the ERP project improve significantly after
systems deployment.
Michael Rosemann and Jens Wiese [164, 169] suggest
that the Balanced Scorecard (BSC), a framework
originally developed in order to structure the performance measurement of an enterprise can be used for the
evaluation of these tasks. Adapting the approach of the
Balanced Scorecard and adding a new fifth project
perspective increases the completeness and the quality
of ERP implementation reports. At least it raises the
awareness for relevant factors. Controlling the ERP
usage can be based on a "classical" BSC (top down)
and utilize the aggregation of ERP monitoring data
(bottom up). It should be stressed that this approach is
not a typical Balanced Scorecard application. More
often, the Balanced Scorecard evaluates the performance of an enterprise or a department.
Jen-Her Wu Yuh-Min Wang Mien-Chih Chang-Chien
Wei-Chun Tai [222, 223] focus on User satisfaction is
one evaluation mechanism for determining system
success. In his study, they concentrate on satisfaction
results; examine factors related to satisfaction, and
compare satisfaction differences between firms implementing foreign and domestic ERP systems. Measuring
ERP impact directly from costs and benefits, productivity improvements, competitive advantage and impact
on decision-making would be ideal. In view of the
difficulty such measurement entails, user satisfaction
has received widespread acceptance as a surrogate
measure, and was used in their study.

&

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 [Jen-Her Wu
Yuh-Min Wang and Hsi-Tze Wan [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.
&
As performance is a multidimensional construct
(Eccles
1991, Grant/Higgins 1996, Kitchenham 1996), a performance measurement system (PMS) has to manage
both financial and non-financial performance indicators
(PIs). Depending on the performance measurement
systems (PMS) framework being applied (e.g. Bititci/
Carrie (1998), Kaplan/Norton (1996), Kueng (2000),
McNair et al. (1990), Neely/Adams (2000)), different
dimensions and PIs are relevant. Therefore, it is
necessary that PIs can be defined freely depending
upon the context in which an ERP system is planned to
be deployed and used.
& Most ERP systems are ill equipped to deal with the
demand of slow moving items such as spare parts.
Based on data from a Fortune 500 company, presents
the development and evaluation of a spare parts
inventory control model. Compares the proposed model
with the results achieved using the forecasting and
inventory management modules of a popular ERP
system [156].
5.2 ERP systems along their lifecycle
The ERP lifecycle In this section we use the ERP lifecycle
framework proposed by Esteves and Pastor [52]. This
framework is structured in phases, which consist of the
several stages that an ERP system goes through during its
whole life within the hosting organization. The stages are:
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adoption decision,
acquisition,
implementation,
use and maintenance,
evolution,
retirement phase.
In the following, we describe briefly each phases.

Adoption decision phase In this phase, decision makers in a


firm must question the need for a new ERP system while

selecting the information systems justification approach


[77] approach that will best address their critical business
challenges and improve the organizational strategy. This
decision phase includes the definition of system requirements, its relevance, goals, costs, and benefits, and an
analysis of the impact of adoption at a business and
organizational level.
Acquisition phase This phase involves selecting the product that best fits the requirements of the organization to
minimize the need for customization. A consulting company is also selected to help in the phases of the ERP lifecycle
that follow, especially in the implementation phase. Factors
such as functionality, price, training and maintenance
services are analyzed, the contract is structured, and the
contractual agreement is defined. In this phase it is also
important to analyze the return on investment of the
product selected.
Implementation phase This phase deals with the customization or parameterization and adaptation of the ERP
package acquired, to meet the needs of the organization.
Usually this task is performed with the help of consultants
who provide implementation methodologies, know-how,
and training. Although training is present in all the phases,
the largest training investment is made during the
implementation phase.
Use and maintenance phase This phase consists of the use
of the product in a way that returns expected benefits
and minimizes disruption. During this phase, functionality,
usabil- ity, and adequacy to the organizational and business
processes are important. Once a system is implemented, it
must be maintained, because malfunctions have to be
corrected, special optimization requests must be met,
and
general systems improvements have to be
implemented.
Evolution phase In this phase, the system is upgraded by
new technology insertion and additional capabilities are
integrated into the ERP system to obtain improved benefits.
The extensions can be classified in two types:
1.

Evolution "upwards". Functionality is oriented to


decision making with applications such as advanced
planning and scheduling, data warehouses, and business intelligence systems;
2. Evolution "outward" to the systems environment, with
applications such as customer relationship management, supply-chain management, inter-organizational
workflow, and electronic commerce.

Retirement phase When new technologies appear or the


ERP system or approach becomes inadequate to the

business needs, managers decide if they will substitute


another information system approach that is more
adequate to the organizational needs of the moment.
Some organizations already passed through this phase
for reasons such as strategic changes, lack of trust in
the ERP vendor or the implementation partner, or bad
implementation experiences.

5.3 The ERP lifecycle issues


5.3.1 ERP adoption
Main topics researched The research in this phase focused
on how some types of organizations adopted ERP systems
and the associated requirements, risks, costs and benefits.
One study is centered in the modeling of organizational
culture before selecting and installing an ERP system.
Some insights for researchers that want to research in this
phase are proposed by Oliver and Romm [135].
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Fichman [56] in his seminal research provide a model


based on real options that can be used in making decision
on ERP adoption. He states that making decisions when
uncertainty about the taking full benefit of the system
and irreversibility in the cost and the risk of its
implementation are high and complicated. Therefore,
he has developed a model using concepts from real
options to make decisions about the invest- ment and
adoption of in a new system.
& Iansiti and Levien [96] state that ERPs success in an
organization depends on understanding its eco-system
and the organizations role in it. They suggest that an
ERPs success depends on understanding of the importance and the benefits of a companys ERP systems
with its business partners enterprise systems. Therefore, companies ERP adoption process is influenced by
the complex interdependencies among them.
& Porter [150] warns against the cases in which IT works
against business strategy. He describes some cases in
that: Package software applications were hard to
customize, the companies were often forced to change
the way they conducted activities in order to conform to
best practices embedded in the software. It was also
extremely difficult to connect discrete applications to one
another. Enterprise Resource Planning (ERP) systems
linked activities, but again companies were forced to
adapt their ways of doing things to the software.
& Ross and Weill [170] emphasize the fact that making
decisions on adopting new technologies such as ERP is
a business-not just technological challenge. They
suggest the importance of senior managers active
involvements in making key technology decisions.

Otherwise, when the IT department in an organization is


left alone in making decisions on ERP and other
technologies adoptions disasters may occur.
& Oliver and Romm [135] discusses the need of further
research into the planning phase of the adoption process
and outline some of the principles that should form the
basis of empirical research in this area.
& Rugg and Krumbholz [172] stress the importance of
correctly modeling the organizational culture before
selecting and installing a system. They describe a model
of culture, which can be applied to the ERP context and
describes a framework to select an elicitation technique
for modeling organizational culture.
& Fulford and Solanki [60] describe the requirements,
risks and rewards of an ERP adoption in a manufacturing organization.
& Hirt and Swanson [83, 84] develop a case study where
an ERP systems adoption process is analyzed. This
article provides good insights about some issues and
factors that are critical to an ERP systems successful
adoption in a firm.
& Monday [128] examines the potential scope of ERP for
supply chain management in the wine industry and the
extent to which ERPs can be considered as a potential
solution.
& Oliver and Romm [136] outline the significance of ERP
systems and analyze the factors that lead to ERP
adoption within universities.

5.3.2 ERP acquisition


Main topics researched The research in this area focuses
on selection methods and criteria affecting ERP selection,
ERP
specially the ERP selection process for SMEs. One of the
studies analyzed the differences in characteristics of the
ERP system selection process between SMEs and large
organizations. One of the studies proposes a novel way to
help vendors specify their products. Articles related to this
topic include:
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Abdinnour-Helm et al. [1] discuss the preimplementation


tasks
and requirements that encourage acceptance,
successful acquisition, and effective implementation
of systems within organizations.
ERP
Sistach et al. [189] and Sistach and Pastor [190]
propose a method for the acquisition of an ERP system
in small and medium enterprises (SMEs).
McQueen and Teh [123] present an acquisition
process model that shows a progression from an
organization-oriented acquisition process to a marketoriented acquisition process and describe influence
factors in the process.

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Stefanou [201] provides a framework for the selection


process of ERP Systems, which can be useful for both
identifying critical issues for further research and
assisting managers considering ERP projects.
Brown et al. [30] identify a long set of business and IT
factors that are related to the purchase and acquisition
of ERP systems.
OLeary [134] investigates the game-playing behavior
that can manifest itself in the requirements analysis
process, evaluation, and choice of ERP software. This
study is based on three cases and two sets of requirements analysis software.
Stafyla and Stefanou [198] report the findings from
empirical research about managers cognition about
key factors affecting the selection of ERP software. A
cognitive mapping approach is used to investigate
project leaders perceptions engaging in SAP R/3
projects in Greece.
Shakir [181] maps six models of decision-making for
the evaluation, selection, and implementation phases of
an ERP system and uses a case study to conceptualize
the models.
Bernroider and Koch [22] detail the results from an
empirical
study
concerning
differences
in
characteristics of the ERP system selection process
among small, medium, and large sized organizations.
Leist and Winter [110] developed a cost-based model of
information systems optimization to derive an optimal
allocation of business packages.
Sammon and Adam [174] present a literature-based
model of ERP software selection that claims to be the
foundation for a model of managerial decision making
in ERP projects.
Maiden et al. [118] propose the use case studies and
scenarios to help vendors specify their products needs
and requirements.

5.3.3 Implementation phase


Main topics researched Some authors studied implementation approaches and others proposed new ones. However,
we found that implementation does not mean the same
thing to everyone. Each author has his own model of
implementation phases, for example, Umble et al. [215]
provide implemen- tation procedures critical to ERP
implementation. In our views critical success factors
research are not well covered. Only a few studies provide
ERP success factors definition [120, 121] and a limited
number of them focus on ERP impacts on the
organizational, technological and business level, on
business process reengineering, and on organiza- tional
change management issues. The number of studies is not
sufficient to create a body of knowledge in the area.

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.
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Umble et al. [215] identify success factors, software


selection steps, and implementation procedures that are
critical to successful implementation ERP systems.
&
Gattiker and Goodhue [68] discuss ERP
implementations
requirements within organizations. They also discuss
the factors to be considered in ERP implementations.
& Vincent et al. [2003] identify the factors that influence
effective management of ERP systems implementation
process.
& Al-Mashari et al. [6] provide taxonomy of critical
success factors in ERP implementation process. The
taxonomy provided in their paper is based on a
comprehensive study of ERP literature.
& Nohria et al. [132] discuss that effective implementation
depends skills in four primary management practicesstrategy, structure, execution, and culture. They also
emphasize that flawless implementation of ERP
requires simplified organizational structure.

Implementation case studies We found several case studies


that document specific ERP implementations. They cover
different perspectives in particular situations such as: ERP
impacts, organizational change management, business
process reengineering, people roles, and decision-making.
The objectives of these case studies were:
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To study the influence of ERP implementation on


operational performance. An empirical study focusing

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on changes in process dynamics as a source for


organization performance improvement is also provided
by Cotteleer and Bendoly [42].
To discuss the benefits of taking integrated approach in
ERP implementation and other critical issues involved
in efficient implementation of ERP [3, 69, 154].
Davenport [45] presents an overview of ERP systems as
he called them, their main functions, their attractiveness
and the problems related with their implementation.
Davenport also analyzes the impact on a companys
organization and culture.
To survey, study, and analyze ERP systems implementations in manufacturing firms [133].
to analyze the ERP impacts based in a benefit/costs
analysis [69];
to describe the impact of ERP on job characteristics
[147] and on organizational knowledge [16];
to test the role of three key social enablers in ERP
implementations: strong and committed leadership,
open and honest communication, and a balanced and
empowered implementation teams [175];
to make recommendations on how to maximize the
benefits from ERP [131] or how to avoid ERP project
failures [180];
to demonstrate how myth-making served to construct an
ERP system as an ideal system and the legacy system
as a dying system [7];
to analyze the key decisions of the development team
and key success factors [40];
to decide onto an ERP adoption and implementation
[83, 84];
to analyze ERP implementations from a knowledge
transfer perspective [108];
to demonstrate tradeoffs between Big Bang versus
slower ERP implementation approaches that allow time
for organizational learning [31];
to describe the journey of Geneva pharmaceuticals
through the first two of three phases of SAP R/3
implementation project [24];
to compare the best of breed strategy with the single
vendor ERP alternative [113];
to identify the critical elements of business processes
and ERP systems alignment [192, 218];
to define business process requirements for large-scale
public sector ERP implementations [25];
to explore strategic options open to firms beyond the
implementation of common business systems [89];
to describe the implementation and measurement of a
SAP system in a multi-cultural organization [43, 44, 76];
to standardize ERP templates within the different ERP
systems of an organization [95];
to study business process reengineering [161, 163, 191]
and change management [8, 148];

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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.

5.3.4 Use and maintenance


Main topics researched The main issues researched on
this area are ERP post-implementation benefits, limitations and factors that affect ERP usage. Some studies
analyze the impact of ERP systems in organizations
performance and accounting functions. Some authors
analyze technological issues such as ERP upgrades,
security, maintenance tasks, and databases performance.
Article related to the use and maintenance of ERP
systems include:
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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
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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.

Int J Adv Manuf Technol (2012) 61:9991018


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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.

5.3.5 Evolution phase


Main topics researched The evolution phase issues studied
are also mainly technology-oriented, such as development
of interfaces with other systems, the integration of customer
relationship management modules and use of web technologies. Another important issue studied is workflow management, with new approaches and architectures being
proposed.
Article related to the use and maintenance of ERP
systems include:
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Shaw [184] analyzes the use of Web technology and its


relation to supply-chain management.
Lenzerini et al. [111] propose a framework for
providing an integrated view of data that is associated
with the ERP system. The framework can deal with
data from different kinds of applications.
used
Park [142] develops a framework for a design interface
module in ERP systems that automatically extract
features required for a process planning.
Meier et al. [124] develop an Editorial Workbench that
helps to manage knowledge spread in internal and
external sources in order to distribute the right information to the responsible manager in time.
Rosemann et al. [165] introduce two different
approaches for possible workflow-based ERP architectures and discuss the related advantages and
constraints.
Bergamaschi et al. [20] propose a data replication
model, called DOT (Dynamic Ownership Transition),

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to realize the integration between workflow and


database technology to support data intensive workflow
applications.
Schnefeld and Vering [185] present a concept for
integrating ERP systems and Computer Supported
Cooperative Work (CSCW) and describe the benefits
of the integration of both worlds.
Last and Maimon [107] provide an approach to
knowledge discovery in databases (KDD) applied to
ERP databases.
Assogna [12] presents a project to explore the possibility of "automating" the generation of a decision support
and operational IS, starting from an initial "business
idea" of top management.
Mylopoulos [130] reviews goal-analysis research in
requirements engineering and illustrates how it can
facilitate the customization of a customer relationship
management system.
Becker and Blsche [19] present an approach to
facilitate electronic coordination in enterprise spanning
business-to-business relationships.
Themistocleous [19, 213] describes application integration and proposes taxonomy. He also analyzes the
factors related with the impact of application
integration on organizations.

Retirement phase Very few articles relating the retirement


phase of ERP systems were found. However, but some
publications [e.g. [45]; Scott [180]] cite cases of ERP
systems retirement. Some publications in the Press [e.g.
New York Times, Wall Street Journal,
the
Economist] describe some
ERP
implementation
disasters. The most famous retirement case is FoxMeyer
Drugs [Scott [180]]. At present, the majority of
organizations are in the implementation or in the use and
maintenance phases.

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

some phases, namely acquisition and implementation, the


strong intervention of consultants makes it difficult to
access information.
Although several ERP systems are in the market, the
majority of case studies analyze SAP systems. Few studies
and little research generalize the findings to other ERP
systems.
ERP systems offer many potential areas for research,
several of which are discussed in this article. Due to their
pervasive nature, ERP systems are of interest for a wide
range of professional and scholarly communities (from
software engineering to accounting), apart from the IS
field. This suggests that ERP-related research could or
should be interdisciplinary. In our opinion, the number of
publications on ERP systems will grow exponentially in
the coming years, because many universities created
research areas in ERP systems and the interest of the IS
community is also growing.

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