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Vicious and virtuous cycles in ERP implementation: a case study of interrelations between critical success factors
ERP implementations are complex undertakings. Recent research has provided us with plausible critical success factors (CSFs) for such implementations. This article describes how one list of CSFs (Somers & Nelson, 2001) was used to analyse and explain project performance in one ERP implementation in the aviation industry. In this particular case, poor project performance led to a serious project crisis but this situation was turned around into a success. The list of CSFs employed was found to be helpful and appropriate in explaining both the initial failure and the eventual success of the implementation. CSFs in this case appeared to be highly correlated, ie changes in any one of them would influence most of the others as well. The reversal in performance after the project crisis was caused by substantial changes in attitudes with most of the stakeholders involved, such as top management, project management, project champion and software vendor.
3. ERP ADOPTION FOR E-GOVERNMENT: AN ANALYSIS OF MOTIVATIONS Abstract In order to provide more efficient government and better services to citizens, public administrations and agencies have invested in Enterprise Resource Planning (ERP) systems as their basic technological infrastructure for e-government. The interest generated by the ERP phenomenon in the public sector, and the particularities of this sector make specific studies of ERP in government organizations necessary. Based on the analysis of secondary data published in the form of success stories by the largest ERP vendors, we seek to identify and characterize the actual motivations that
lead to the adoption of ERP systems in e-government. A second aim is to characterize public organization with regard to ERP by uncovering typical profiles of motivations among them. Data from 46 stories of public organizations from 15 countries were collected and analyzed. Results indicate that some government organizations adopt ERP systems primarily to integrate their information technology, while others seek greater process efficiency or are strategy-driven. Eight organizations in the "process efficiency" group, so-named after a cluster analysis, have focused on supply-chain management functions. Nineteen technology integration organizations have mostly implemented government portals and procurement systems, whereas the nineteen organizations in the strategy group look to ERP for online services and customer-relationship management. 1.
Abstract
Enterprise resource planning (ERP) systems cannot remain static after their implementation, they need maintenance. ERP maintenance is a key process required by the rapidly changing business environment and the usual software maintenance needs. However, these projects are highly complex and risky. So, the risks management associated with ERP maintenance projects is crucial to attain a satisfactory performance. Unfortunately, ERP maintenance risks have not been studied in depth. For this reason, this paper presents a general risks taxonomy. It gathers together the risks affecting the performance of ERP maintenance. Moreover, the authors use the analytic hierarchy process (AHP) methodology to analyze the risks factors identified. It helps managers, vendors, consultants, auditors, users and IT staff to manage ERP maintenance better. Results suggest that the most critical stage in ERP maintenance is the first phase, which receives, identifies, classifies and ranks the software modification. The most important hazards in ERP maintenance are the cooperation and commitment of ERP users and managers.
ABSTRACT
ERP (Enterprise Resources Planning) users often refuse to pay off the balance of payment because they think the software vendors fail to complete the targets, for which the true reason is that the boundaries or standards on the effectiveness and economic benefits of ERP is not clear. So it is necessary and important to effectively measure the benefits brought by ERP to the users, which is favorable for both users and software vendors. This paper adopts an empirical research method and analyzes on the information of ERP users of a Chinese well-known software company from Shanghai and Shenzhen Stock Exchange. The study finds that the corporations who introduce the ERP system are generally better in performance than non-ERP users. The study also finds that the total assets of the ERP users in tested group are increased and the asset-liability ration is stable after introducing ERP and, meanwhile, the total assets of the non-ERP users in controlled group are not increased and the assetliability ration is decreased. It might show that ERP can help users maintain and strengthen their business strength. However, the study finds that both of inventory turnover and account payable turnover of the ERP users have been slowed down instead of speeding up in the first two years after introducing ERP. The decrease of inventory turnover represents that ERP system might need a long time for running-in. The reasons for account payable turnover decreasing might be two. One is that ERP is in the stage of running-in. The other probably is that ERP helps the users become stronger so that they can defer the payments to vendors in order to making use of more non-cost funds. 6. The recovery of BPR implementation through an ERP approach: A
obtain a realistic preview of the outcomes. Research limitations/implications ERP-driven approach to BPR implementation used in this hospital represented a holistic rather than a piecemeal approach to an organization-wide change effort. There is always a tendency for the motivation and support for such change efforts to dissipate. Research is needed on how to sustain the momentum for such change endeavors. Practical implications With ERP-driven BPR it is easier for management to offer a realistic preview of the expected outcomes, possible changes in the design and scope of the project, and to guard against unrealistic worker expectations. However, the ERP-driven change approach requires close cooperation and mutual protocols between all the principal stakeholders, i.e. the executive suite, ERP system vendor, business process and support teams, and IT department. Originality/value The paper offers a rare insight into a company where both approaches to BPR implementation were tried and provides evidence in support of ERP-driven BPR.