Enterprise resource planning (ERP) systems are the most ambitious, sophisticated use of information technology (IT) by businesses to date. Managers must compare the massive investments of resources and time to be committed to an ERP implementation against the significant benefits that may be derived from ERP systems in an environment in which traditional capital budgeting decision-making models may not be appropriate.
The purpose of this study is to determine if ERP implementations have brought about significant changes on large industries, by answering questions other studies have not answered. This study is motivated both by an appreciation of the magnitude of a company's decision to invest in an ERP system and by the fact that other research to date contains limitations of scope or method that may reduce the reliability of reported results. Accordingly, this study examines success factors of ERP implementations.
The results of this research are significantly more reliable than results of other studies because this research examines whether the ERP systems yield substantial benefits to the firms that adopt them, and that the adoption risks do not exceed the expected value, although there is some evidence (from analysis of financial leverage) that suggests that firms do definitely perceive ERP projects to be risky. There also appears to be an optimal level of functional integration in ERP with benefits declining at some level, consistent with diseconomies of scope for very large implementations, as one would typically expect.
[...] It identifies the critical success factors in ERP implementation, categorizes them into the respective phases in the ERP life cycle model and discusses the importance of these factors in ERP implementation (Markus and Tanis, 2000) Aims and objectives: This research is an attempt to broaden the ERP implementation research by defining the theoretical areas built and operational measures specific to ERP implementation and success measure to advance ERP research Aim The main aim of this research is to study and analyze the impact of implementing ERP solutions on large industries Objective The objective of this dissertation is to: Study about the Enterprise Resource Planning (ERP) systems and their business aspects. [...]
[...] Problems associated with software implementations are neither new nor specific to enterprise resource planning (ERP) systems Impact of implementation There is a small but growing literature on the impact of ERP systems; the majority of these studies are interviews, cases studies or a collection of case studies and industry surveys (Davenport, 1998). McAfee (1999) studied the impact of ERP systems on self-reported company performance based on a survey of implementers of SAP R/3 packages. Participating companies reported substantial performance improvement in several areas as a result of their ERP implementation, including their ability to provide information to customers, cycle times, and on-time completion rates Benefits ERPs are designed to help manage organizational resources in an integrated manner. [...]
[...] To overcome users resistance to change, top management has to: Study the structure and needs of the users and the causes of potential resistance among them Deal with the situation by using the appropriate strategies and techniques in order to introduce ERP successfully and Evaluate the status of change management efforts Limitations and further research: While the data obtained and analyzed during the course of this study indicated some support for the model and hypotheses, the lack of substantial numbers of respondents greatly hampers the effectiveness of this study. [...]
[...] Most of the industries choose SAP for building their ERP solutions and Business Process Reengineering (BPR) because SAP is the world's leading business software solution and e-business platform. SAP solutions are integrated, configurable, open and scalable. They work for all types of business, supporting and streamlining. SAP provides solution both for complex or relatively simple business process (Marchand et al, eds pp52, 106- and 298) ERP solutions provided by SAP The first ERP system was developed by two German engineers who founded SAP in the early 1970s (Okrent & Vokurka, 2004). [...]
[...] (2000) ‘Decision Making in the Evaluation, Selection and Implementation of ERP Systems'. Paper presented at the Americas Conference on Information Systems, Long Beach, California. Sia, S. K., Tang, M., Soh, C. and Boh, W. F. (2002) ‘Enterprise resource planning (ERP) systems as a technology of power: empowerment or panoptic control?' The DATA BASE for Advances in Information Systems Slater, D. (1999) 'An ERP Package for You . and You . and You . and Even You', CIO Magazine: February 15. [...]
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