Professional Documents
Culture Documents
1, 2011 23
Valérie Botta-Genoulaz
Université de Lyon,
INSA de Lyon – Liesp,
F- 69621 – Villeurbanne Cedex, France
E-mail: valerie.botta@insa-lyon.fr
Abstract: Information systems (IS) are now more and more based on
‘off-the-shelf products’ such as enterprise resource planning (ERP) systems.
These offer a generic solution apart from the company in which they will be set
up. Thus, an essential success factor of this set up is a consistent alignment with
the company. The methods suggested to support this alignment, which are
described and analysed in this paper, especially insist on the modelling
techniques to use without sticking to the characterisation of the various
alignment and misalignment situations. Therefore, an algorithm to identify
them is proposed. It formalised those situations and associate decisions to be
taken in order to mitigate the misalignment risks.
1 Introduction
Information systems (IS) play a central role in manufacturing companies and are
increasingly based on ‘off-the-shelf’ products. In this paper we focus on enterprise
resource planning (ERP) systems, whose implementation is not always a success. Many
studies, such as ‘the CHAOS report’ (http://www.standishgroup.com/chaos) in 1995 by
the Standish Group, or the ‘LLC’ (http://www.robbinsgioia.com/new_events/
012802_erp.aspx) report by Robbins-Gioia in 2002, analyse the failure rates of
such implementation in terms of over-spending, deadlines, and unsatisfied requirements.
Darras (2004) shows that the failure rate reported in these studies ranges from
51% to 69%. A number of authors (e.g., Ramayah et al., 2007; Kamhawi and
Gunasekaran, 2009) have studied the critical success factors of ERP systems
implementation. Among them, there are two major kinds of factors: those linked
to the stakeholders and those linked to the project. For the stakeholders, there are the
difficulties linked to the culture of change, for example a poor understanding of the
ERP system functioning that leads to its rejection by the end-users. Secondly, there
are the difficulties that stem from poor project management such as the decisions
linked to the functional perimeter and the composition and involvement of the
project team. In this paper we focus on the functional perimeter and particularly on
the fit between the ERP system and the company. As the implementation of the ERP
systems implies their alignment with the enterprise’s needs, a consistent alignment
constitutes one of the keys of successful implementation (Millet and Botta-Genoulaz,
2008).
The second section presents the ERP systems/enterprise alignment problem. It details
the different choices that have to be made during the ERP project, especially during the
selection and deployment phases. The third section reviews the methods suggested in the
literature to support those choices for both phases of presents the ERP systems/enterprise
alignment problem. It details the different choices that have to be made during the ERP
project. Some methods are based on the use of questionnaires and others on the use of
models. Those that are based on the match between the standard solution models and the
enterprise needs models are analysed in the fourth section. This analysis emphasises their
characteristics with regard to formalisms used in the models, and to the alignment
approach. We will see that the studied methods do not insist sufficiently on the various
alignment and misalignment situations between the processes to be put under control and
those proposed by the ERP system. Therefore, in the fifth section we propose a decision
algorithm that formalises all situations of alignment and misalignment between the ERP
system and the company’s processes. Situations of alignment and misalignment can thus
A decision algorithm for ERP systems alignment 25
be identified and associated with an adequate decision. In the sixth section we illustrate
the proposed algorithm in the case of an SME in the region of Strasbourg (France)
running an ERP project. Finally, in the seventh section we conclude and give some
research perspectives.
One of the main features of ERP systems is that they offer a generic solution which has to
be customised by a specific company depending on its own requirements. This means
that during the implementation project, also called the ERP project, the ‘alignment
between the ERP system and the enterprise’ has to be worked out.
We have first studied the different life cycles of ERP projects proposed in the
literature (Esteves, 1999; Darras, 2004; Quellenec, 2007; Klee, 2005; Giachetti and
Truex, 2009). The aim was twofold: to propose our own view of this life cycle, and to
identify the stages during which alignment occurs. Our view is that the ERP project life
cycle is composed of the selection and deployment phases. The first phase consists of the
following stages: opportunity and feasibility study, needs specification, analysis of call
for tenders, and editor’s choice. The second phase is composed of: launching, adequacy,
configuration, and integration and releasing.
Several critical issues influence the success of an ERP project, including the users’
training, the ease of use of the ERP system, the composition of the teamwork, the
top-management involvement, etc. (Botta-Genoulaz and Millet, 2005; Motwani et al.,
2008; Ramayah et al., 2007; Singla and Goyal, 2007; Kamhawi and Gunasekaran, 2009;
Prakash and Rolland, 2001; Madapusi and D’Souza, 2004). We focus primarily on one of
them: the alignment between the deployed ERP system and the enterprise. This
problematic is underlined by Prakash and Rolland (2001) and Madapusi and D’Souza
(2004) and requires a choice to be made during:
• Selection, especially during the analysis of call offer stage. This stage makes it
possible to choose the ERP system best suited to the needs of the company.
• Deployment and, more precisely, during the adequacy stage. Since the ERP system
offers a generic solution, this stage enables to choose the company’s processes that
have to be put under control and the way to put them under control with the ERP
system.
Many authors show that the decisions that have to be made towards these choices are
tricky (Soh et al., 2000; Davenport, 1998; Light, 2005; Daneva and Wieringa, 2006). For
example, when the corporate culture is completely different to that offered by the ERP
system, adopting the logic of the ERP system can entail a risk. Moreover, companies
have to be careful about not losing their competitive advantage by abandoning some of
their carrier strategies for more standard strategies imposed by the ERP system. It has
been shown (Etien and Rolland, 2005; Botta-Genoulaz, 2007; Millet and Botta-Genoulaz,
2008) that some problems can stem from a company’s lack of adaptation to its ERP
system. Methods to support these choices are thus essential. In the following section we
review these methods.
26 S. Mamoghli et al.
3 Literature review
In this section we present the methods that deal with the ERP system/enterprise
alignment problem during the selection and deployment phases. The methods proposed
for the selection phase are based on the use of either questionnaires or models. Those for
the deployment are all model-based.
The methods based on the use of questionnaires (Wei and Wang, 2002; Tournant and
Azan, 2003; Yazgan et al., 2009) consist in providing a questionnaire to each competing
editor. The questions to be answered are related to software evaluation criteria such as the
editor’s reputation, the costs suggested by the editor for the ERP system’s proposed set
up, etc. The editor’s choice is then based on the one that responds best to different
criteria.
The model-based methods, which are completely different from those recommending
the use of questionnaires, are detailed in the following sub-section. Each author studied
proposes a set of models, a related formalism, and an alignment approach using the
models. Their methods are described in the following sub-section according to those
three points.
nodes) and strategies (represented by edges) to achieve them. A section is the association
of two intentions and a strategy to link one of these two intentions to the other. Start and
Stop intentions are used respectively for the beginning and the end of the MAP.
These authors propose first to build the ‘to-be MAP’, ‘as-is MAP’, and ‘ERP MAP’.
The construction of the ‘matched MAP’ can be driven by one of them. In fact, the authors
suggest considering one of the first three models constructed, and comparing it with the
other two. For each section of the driven model, we consider the intention and strategy of
the corresponding MAP from start to stop. This is done in order to decide whether they
a match the requirements exactly and so must be included in the ‘matched MAP’
b need adaptation before their inclusion in the ‘matched MAP’
c are irrelevant.
centre of the GRAI grid corresponds to a use case that allows one to highlight the main
functionalities wished by the enterprise or proposed by the ERP system. Each use case
constitutes an input for a process, represented in the form of an UML activity diagram.
For the selection phase, the macroscopic comparison proposed by Darras (2004)
allows us to analyse the functional cover rate of each competing ERP system and their
possibilities of extension towards the company’s uncovered needs. The ERP system that
covers the maximum number of functionalities and extension possibilities is therefore
chosen. However, it is not specified how the models can be compared. Furthermore, for
the deployment phase, Darras (2004) proposes a mapping mechanism that is based on the
matching process of similar elements between activity diagrams of the particular model
of the company, on the one hand, and the reference model, on the other hand. Similar
elements are put into the IS enterprise model that is built gradually during the process of
visually matching the activities of each model one-by-one.
the processes can also be represented. The interaction between those four views
constitutes the fifth one. EPC is able to represent this interaction and not only each view
separately.
Finally, as noted above, ARIS does not provide an approach supporting the alignment
process but only tools that can help and accompany it. ‘ARIS simulation’
(ARIS platform, http://www.ids-scheer.fr/fr/index_fr.html), for example, is a tool that
allows one to simulate, analyse and customise the existing processes of the company. It is
thus possible, thanks to ARIS tools, to establish a model of the enterprise’s wishes.
3.1.8 Synthesis
Table 1 sums up the contribution of each author. It shows, for each proposition, the
phase(s) of the ERP project life cycle (selection and deployment) concerned, and the type
30 S. Mamoghli et al.
Table 2
system
4 Model of what will be implemented
Darras GRAI grid Functional detailed Communicate, analyse, 1 Model of the needs of the company Alignment process: matching process of the two models to
(selection) reason, pilot the 2 Models of what proposes the ERP obtain the cover rate and extension possibilities of the second
functioning system one toward the first one
Measurement technique: not specified
Wu et al. Use Case diagram of Intentional Communicate, analyse, 1 Model of the needs of the company Alignment process: matching process of two models to obtain
UML oriented goals reason 2 Models of what proposes the ERP a list of misftis
system Measurement technique: comparison algorithm of the activity
diagrams, the drawings and the data glossaries
Activity diagram of Functional and Communicate, analyse,
UML with drawings informational reason
and data glossaries for
each activity
Etien MAP Intentional, Analyse, reason, pilot 1 Model of the existing of the company Alignment process: union of the first two models to obtain
functional, the functioning 2 Model of what proposes the ERP the third one, progressive modification of the latter to obtain
organisational, of system the fourth model which is separated into the fifth and sixth
resources 3 Model of what will be implemented ones
4 Model of the company with the Measurement technique: observation of the third model and
Comparison of the methods of the authors studied (continued)
Each author has his or her own idea of the elements to be compared between
the proposals of the ERP system and the wishes of the company. We think that
the alignment between the desired processes and those proposed by the ERP system
should not be limited to the functional view, but should also include other views. This
alignment concerns, first, the goals of the processes and their activity sequence. It
however also implies a choice of the format and type of the used or produced data and
documents, as well as the organisational units and the material resources in charge of
these activities.
Furthermore, we see that the use of modelling and of these formalisms are primarily
intended to facilitate communication between the members of the company and the
experts, and serve to find a common language. The mechanisms used to build them must
therefore be simple, but that is not always the case. For example, the analysis tools used
in the integration graph require long calculations whose complexity increases when they
have to be applied to real companies.
Each proposed alignment process requires some models to be worked out. All the authors
propose to build the models representing the company’s wishes, what the ERP system
proposes, and what will be implemented in the ERP system. Only some methods, like
those of Prakash and Rolland (2001), or Etien’s, propose the construction of the company
as-is model. Building this model is nevertheless necessary to ensure that the difference
between the company’s present and what will be implemented in the future is not too
large. Once the software package is deployed, a too wide variation can lead to failures
(Avila et al., 2009). Etien’s idea is therefore to represent both the ERP system and the
company in the pivot model, with the aim of not deviating from one of them during the
alignment process.
The methods furthermore recommend matching the model representing what the ERP
system proposes with the model of the company’s wishes, in order to obtain the model of
what will be implemented. However, the measuring techniques opted for are not always
well formalised. In the proposition of Darras (2004), for example, we only know that the
activities of the two models are put in one-to-one correspondence and this for each
activity. There are no tools guiding the order in which to study the activities and the
comparison between them. Only Soffer et al. (2003, 2005); Etien (2007); and Wu et al.
(2007), propose techniques to calculate the distance between models. The potential
situations of alignment and misalignment between the ERP system and the company can
be deduced from this distance.
All the authors present the alignment process in a fair amount of detail. The order of
use of the models, the role of each model in the alignment process and the steps in the
process are always well explained, except for Prakash and Rolland (2001). These authors
do not propose a set of pre-defined steps for their model-driven alignment process. For
example, the process can be driven by one of the three models built at the outset
(‘to-be MAP’, ‘as-is MAP’, and ‘ERP MAP’). However, once one of the models is
chosen, there is no guide on how to continue the matching process with the other
remaining models. Finally, the methods do not adequately formalise the various
alignment and misalignment situations between the models of what the ERP system
proposes and what the company wishes, or the required decisions. Those decisions are
34 S. Mamoghli et al.
however important because they bring to the construction of the model corresponding to
what will be implemented. Only Soffer et al. (2003, 2005) have begun to work on this
point.
3.2.3 Synthesis
We conclude from this section that the authors insist mainly on the formalisms that they
use, and on the matching techniques, which are well developed. However, the methods
do not enable us to emphasise enough the situations of misalignment between the
company's needs and those supported by the ERP system. They do not drive the
decision-making towards these situations. Hence, our proposition is an algorithm to
identify the alignment and misalignment situations as well as the related decisions. It
constitutes the continuation of the work of Soffer et al. (2003, 2005).
The purpose of this section is to present our decision algorithm. It formalises both
the various situations of alignment and misalignment between the ERP system and
the company and the kind of adequate decisions to be made in order to tackle
these situations. We develop, firstly, the situations that represent a typology of aligned
and misaligned situations, and then present our algorithm linking situations and
decisions.
• The ‘as-is’ model, representing the existing organisation. This model enables us to
deduce a part of the ‘as-wished’ model.
• The ‘might-be’ model, representing the needs supported by the ERP system.
• The ‘to-be’ model, representing what will be implemented. This model should
result from the decisions made to tackle the various alignment and misalignment
situations. In our approach, the ‘as-wished’ and ‘might-be’ models are matched to
obtain the ‘to-be’ model as shown in Figure 1. It is during this matching process that
the different situations depending on different modelling views happen. The
following sub-section details the link between modelling views and alignment
situations.
A decision algorithm for ERP systems alignment 35
For the second category, considering a process present in the ‘might-be’ model but not in
the ‘as-wished’ model, the situation is:
• S5: the ‘might-be’ process goal and strategy are interesting for the company.
The three situations concerning the informational view deal with each process already
chosen by the company. Considering data used or impacted by a selected process, those
situations are:
• S6: the ‘as-wished’ data format is identical to that proposed in the ‘might-be’ model
• S7: the ‘as-wished’ data format is not identical to that proposed in the ‘might-be’
model but the format wished for by the company is important
• S8: the same precedent situation as the preceding one but the format proposed by the
ERP system is interesting for the company.
The algorithm that we propose associates one or several actions for each of those
situations. These situations happen during the alignment process consisting essentially in
matching the ‘as-wished’ model with the ‘might-be’ model at the different modelling
view levels.
Figure 2 The intentional and functional flowchart for Situations S1, S2, S3 and S4
The proposed algorithm enables us to check, in a given order, the various situations of
alignment and misalignment between a company’s needs, based on its wishes, and
those supported by the ERP system. This is done by matching the ‘as-wished’ model
with the ‘might-be’ model at different modelling view levels. The idea is to begin
with the intentional view, then with the functional view, and lastly with the
informational view. The algorithm takes into account the enrichment of the ‘to-be’
model with elements discovered gradually, during the model matching process, on
the ‘might-be’ model. When the different situations are characterised, the algorithm
also enables us to associate them with the consistent decisions to tackle these
situations. This matching process is carried out goal-by-goal and activity-by-activity.
For the moment, it is not automated. We have decided to use the UML activity
diagram to represent the algorithm. Thus, we propose three diagrams. The first
corresponds to the intentional and functional view matching the processes defined in the
as-wished model. The second corresponds to the discovering of new processes in
the might-be model. This situation is generally not tackled in the literature studied
above. However, it is crucial because the ERP systems often offer new functionalities
that the companies never even envisage. These have to be analysed carefully. The third
activity diagram details the matching at the informational view level, for the chosen
processes. These three diagrams have to be executed sequentially. The algorithm
therefore begins with the intentional and functional flowchart, for each process of the as-
wished model (cf. Figure 2). This flowchart leads to situations S1 to S4 and their
corresponding decisions. The algorithm then goes further, with the discovered processes
in the might-be model (cf. Figure 3). This flowchart corresponds to the fifth situation
(S5). Finally, the algorithm ends with the ‘informational matching’ of the chosen
processes in the to-be model (cf. Figure 4). This flowchart is associated with situations S6
to S8.
In the next section we illustrate the algorithm in the case of an SME leading an ERP
project.
5 Illustration
We have studied the case of an SME in the region of Strasbourg (France), which decided
in 2008 to change its ERP system. As this system had reached ‘the end of life’, its
maintenance was no longer insured. At the end of 2008, the company selected a new ERP
system for which the deployment phase began in January 2009. In June 2009 the
company validated the adequacy stage of the deployment phase. This real case of an ERP
project serves to validate and illustrate the decision algorithm proposed in the previous
section.
drew on the minutes of the adequacy meetings that we attended. During these meetings,
the processes to be effectively implemented were discussed between the editor and the
stakeholders.
We used the UML formalism to represent the models and especially the activity diagram.
This enabled us to represent the functional view. Since (by definition) this diagram does
not allow us to represent the intentional and informational views required to illustrate the
situations of our decision algorithm, we adapted it. We added the possibility of
visualising the data used and impacted by the various activities. We also added a note on
every diagram, indicating the purpose of the represented process. Moreover, the
differences between the ‘as-wished’ and the ‘might-be’ models are represented in bold
type.
Two situations are presented here. The first one deals with ‘employee pay
management’, and the second one with ‘expedition management’.
The first studied process does not exist in the ERP system (S4 situation of the
algorithm) and the company decided to support it with an additional applicative brick
(D4 decision of the algorithm). This process exists in the ‘as-wished’ model (Figure 5)
but not in the ‘might-be’ model. The company needs to collect the punches of the
employees’ working hours in order to be able to pay them according to the number of
hours they worked. However, the ERP system selected by the company does not propose
a module that supports this process; that is, that links pay calculations and employee
punches. An external applicative component, interfaced with the ERP system, therefore
has to be added. This software allows one to revert to the punches supplied by the ERP
system and to deduce the corresponding pay.
Figure 6 (a) ‘Might-be’ and (b) ‘as-wished’ models of the process ‘expedition management’
The second studied process is proposed by the ERP system and desired by the company.
There is however a partial equivalence because the strategy proposed by the ERP system
is not the same as the one wished for by the company (S2 situation of the algorithm). The
company decided to keep the company’s process strategy (D2 decision of the algorithm).
In fact, it is not possible for the company to abandon it for a standard one due to the
42 S. Mamoghli et al.
specificity of its product. The ‘expedition management’ process is present in both the
‘as-wished’ and ‘might-be’ models (Figure 6). By visually matching these two models
representing two versions of the process, we notice that
1 the purpose of the two versions is identical
2 the strategies are different
3 the ‘volume’ attribute of the data ‘article’ is not present in the ‘might-be’ model.
The goal of this process is to prepare and deliver the merchandise to the customer. In fact,
the strategy proposed by the ERP system in the ‘might-be’ model is not convenient for
the company. Firstly, calculating the number of trucks required for a company’s delivery
cannot be based on the weight of the products to be transported. Products such as scales
or access platforms are huge. Therefore, the volume of the products to be transported is
more meaningful than their weight, for calculating the number of trucks. The ‘volume’
attribute of the data ‘article’ does not exist in the ERP system, which has to be adapted.
Secondly, in the ‘as-whished’ model of the expedition process, the company insists on
printing packing slips only when the transporter arrives and not when the order is
prepared, as suggested in the ‘might be’ model of the same process. Printing the packing
slip is associated in the ERP system with the status ‘delivered merchandise’. In the
company’s experience, it happens quite often that the transporter forgets to retrieve the
merchandise on the loading dock, so that it cannot be considered as delivered. The
company therefore decided, based on its experience and the specificity of its products, to
keep its own process strategy and not to adopt the standard one of the ERP system. The
ERP system therefore had to be adapted. The interface for computing the number of
trucks now contains the possibility of analysing the merchandise to be transported,
according to its volume. A punch also had to be made by the transporter to allow the
system to print packing slips.
In the course of the adequacy stage, we identified some of the situations of the
decision algorithm so that they could be validated: in particular, S1, S2, S4 and S5 of our
situation typology. For S4, we identified its association with the D2 and D3 decisions.
6 Conclusions – perspectives
The proposed algorithm allows one to recapitulate all the situations that a company has to
face during alignment, especially misalignment.
However, the reviewed methods require all the processes desired by the company and
those proposed by the ERP system to be modelled, in order to locate the potential
misalignments. We therefore suggest, in a future study, to identify misalignment risks at a
very early stage, like Ho. et al. (2009) who propose to identify all the risks of an ERP
project from the outset. The aim is to focus only on the modelling of the processes
representing a major misalignment risk, and thus to save a considerable amount of time
during the deployment phase. One of the envisaged ways could be to implement the
principles stemming from the dialectic, by modelling a given risk situation in the form of
a contradiction (Goepp and Kiefer, 2006).
Acknowledgements
The authors would like to thank the reviewers. Their remarks enable the authors to
improve their work.
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Notes
1 Model-Driven Enterprise and Information System Engineering project supported by the GDR
MACS, CNRS, France.