Understanding the Organisational Impact of ERP: A Case Study in Manufacturing (original) (raw)

Using ERP as a basis for Enterprise application integration

2004

Architecting and implementing e-Business supply chain solutions across and within the modern day enterprise, is now becoming a necessity in order to maintain competitive and be adaptable to market needs. As such, the integration of information and processes is a vital step, using technologies such as using Enterprise Resource Planning (ERP), Supply Chain Management (SCM) and enterprise portal platforms. The effective sharing of resource planning and other enterprise related data across and within the enterprise is typically seen as a facet of a business to business (B2B) platform. However, such infrastructures typically involve a tight integration across intra and inter-organisational systems. This paper examines an Enterprise Application Integration (EAI) initiative taken by a global manufacturer of industrial automation products, which attempted to utilise ERP as an integration tool across its internal B2B infrastructure, to achieve such an aim. This paper discusses those integration considerations and complexities, experienced by the case company upon embarking on an EAI integration programme through the adoption of a core ERP as a catalyst for organizational change. In doing so the authors present an analysis of the inherent risks and limitations of this approach in terms of previously published literature in the field, relating to technology-driven organizational change and EAI impact and adoption frameworks.

ERP Systems-Fully Integrated Solution or a Transactional Platform?

This paper addresses the question of how to make use of Enterprise Resource Planning (ERP) systems in companies in the process industry were there is a pervasive need of process standardization. ERP systems have the potential to contribute with standardization and integration of organizational data through an of-the-shelf solution. In practice results of ERP systems implementation has varied greatly. Considering their implications on business processes and the complexity of the systems this should not come as a surprise. ERP systems do not only imply standardization of data but also standardization of key processes in the company. The consequences on the individual organization are therefore hard to predict. Making strategic choices between different degrees of in-house developed systems, integration of solutions from many different suppliers or to only rely on the ERP systems consultants and their proposed implementation of solutions, can be a troublesome balance act. This paper describes a case study of the Swedish diary company Norrmejerier and the implementation of the ERP system IFS analyzed from a perspective of complex system and standardization. The use of IFS at Norrmejerier can be characterized as a loosely coupled integration with the ERP system as a central integration facilitator. This solution allowed the company to make use of standardization benefits, filling the need of special functionality and at the same time limiting the negative unexpected consequences such as decreased activity support and increased complexity. The key contributions of this paper are that it shows how ERP´s can contribute to standardization and integration efforts in IT environments with peculiar demands on functionality. Secondly it demonstrates how negative side effects related to implementation of ERP systems can be managed and limited.

ERP Systems and Managerial Decision Making - A Model for Analysis

2008

Implementing Enterprise Resource Planning (ERP) systems, the most significant IT development in recent times, affects all aspects of organizational life. While the positive impact of ERP systems on operational efficiencies is well established in the literature, the relationship between ERP systems, decision support capability and decision-making processes has been inadequately investigated in the past. This paper hypothesizes a research model for further investigation. Using standardization and integration, the two key characteristics of ERP systems, the influence of ERP-enabled information environment is explained in terms of its impact on the accessibility/availability, quality and quantity of information. The extent of integration and standardization achieved while implementing the ERP system and organizational culture and size are moderating variables that are expected to moderate the influence of ERP-enabled environment on managerial decision making. Extending recent studies, t...

Challenges of Implementing an ERP System in Industry

IRJET, 2022

A Survey is finished in trade and its observations are noted. This methodology is adopted to grasp the challenges within the organizations, because of that these ERP systems couldn't be enforced with efficiency. A total production cycle was discovered to review ERP implementation methods and challenges occurring in ERP implementation at every part of the production. we've got known and mentioned 9 major factors that stand as barriers for effective implementation of ERP system that are as follows poor authority effectiveness, poor quality of BPR, ERP coding system person, poor IT infrastructure, poor information flow, lower group action support, poor testing practices, unclear expectations from higher management, users disposition to adapt to altered circumstances. In today's high competition within the market, variety within the organizations, perpetually varied markets, and speedily dynamic technology characterize the market during which Enterprise Resource designing (ERP) system (enterprise software package systems, having a wide-range style of structure functionalities) vendors act.. This is the study of production organizations in that ERP systems are allotted within the traditions of Science and Technology and survey observations showing a number of the challenges and barriers that these ERP based organizations face. Overcoming those challenges is very important for the organizations' survival and so, needs careful management of the merchandise and also the product life-cycle severally. ERP information analysis is ready to quickly entice, identify, validate and provide relevant information points throughout the complete sales and sales chain. This analysis can facilitate to beat these barriers by knowing what are issues that require to be resolved from the data that we have collected from organization team members and managers.

Strategic Approaches to ERP Implementation

Journal of International Technology and Information Management, 2008

Strategic reasoning behind ERP triggers a specific path to ERP implementation. In this article we present a simple typology of ERP implementation approaches based on literature review and an empirical research for both manufacturing and services. We distinguish between bottom-up and top-down approaches and between process-oriented and technology-oriented approaches and we discuss the differences between the four resulting types of implementation approaches. INTRODUCTION During the 1980's and 1990's, many organizations were growing through mergers and acquisitions resulting in ever higher levels of systems incompatibility (involving different legacy-type mainframe systems). At the multinational level such issues only multiplied several-fold (Ives & Jarvenpaa, 1993). The challenges of increasing competition and expanding markets, the search for business solutions in the face of the changes resulting from mergers, acquisitions, take-over and restructuring processes, and rising ...

The Impact of Enterprise Resource Planning (ERP) Systems Implementation on Business Performance

Over the last decade Enterprise Resource Planning (ERP) have been adopted by many companies as it contributes to the development and profitability of the organizations by business solutions. Once configured it allows information to enter at a single point in the process, and also updates a single, shared data base for all functions that directly or indirectly depend on this information. These are a set of applications combining key functions like finance, production. Sales, logistics, statutory compliance, human resources etc., in an integrated fashion. In a manner these combine Enterprise Resource Planning system with extended enterprise needs likes software solutions to the employees, customers and vendors. ERP not only helps to establish world class best business solutions and bring transparency in the business. This paper presents the definition, ERP Systems concept and need, the historical evolution of the ERP Systems, why is ERP Systems needed, why firms invest in ERP Systems,...

ERP Systems and Its Impacts on the Business Operations

This study seeks to explain the benefits and challenges of ERP systems and primarily uses the secondary sources. It is based on the analysis of published information, articles, books, and journals drawn from both online and physical libraries. The ERP (enterprise resource planning) system is a software application, leveraged by different organizations in the resource management and planning. These are entirely integrated management components that cover broad functional areas such as human resources, accounting, production, finance, and logistics. ERP systems have evolved over an extended period from seemingly crude information technology processes to more refined and sophisticated procedures with immense ability to offer answers to various management problems faced by organizations. ERP tools are great assets when implemented or adopted by a firm. The benefits that come with the application of ERP supersede the challenges they face. For example, executing ERP software into the organization's information management system reduces the cost of management, streamlines processes, and introduces the aspect of scalability, collaboration, and efficiency.

The Industrial Viewpoint on the Role of Enterprise Resource Planning Systems in Establishing Information Integration

4th International Research Symposium -IRW , 2009

In recent years, the competition in the construction industry has compelled Large Scale Enterprises (LSEs) in the construction industry to work in integrated collaborative information management platforms such as Enterprise Resource Planning (ERP) systems, where information can be acquired, stored and accessed more efficiently. In fact, ERP systems are a relatively recent technology to be adopted within the construction sector and as such the organisational point of view on the role of ERP systems in enabling information integration in the construction industry has not been explored in previous research. Thus, the aim of this study was determined as investigating the industrial viewpoint on the role of ERP systems in establishing information integration in LSEs. Following a literature review in the field, semi-structured interviews were conducted with 21 leading large scale engineering and consulting enterprises in Turkey, to explore their viewpoints and visions on the role of ERPs, in forming information integration. The industry believes that implementing an ERP system will contribute to the centralisation of information, which may later facilitate information integration. The industrial viewpoint on the issue indicates that information integration will be facilitated mainly by integration of ERP systems with project and product data management applications.

Implementation of an Enterprise Resource Planning ERP System and its Impact on Manufacturing Company Operational Efficiency

Global Society Publishing, 2023

This article explores the implementation of an Enterprise Resource Planning (ERP) system and its consequential impact on operational efficiency within manufacturing companies. The research delves into the intricate process of integrating ERP systems, emphasizing their role in streamlining various business functions such as supply chain management, production planning, and inventory control. The study investigates the challenges faced during the ERP implementation phase and elucidates strategies employed to overcome these hurdles. It also examines the role of employee training and change management in ensuring a smooth transition to the new system, emphasizing their pivotal contribution to operational success. Furthermore, the article meticulously analyzes the tangible outcomes of ERP implementation, focusing on key performance indicators (KPIs) that gauge improvements in operational efficiency. This includes reductions in production lead times, enhanced accuracy in demand forecasting, and optimized resource allocation. The research methodology incorporates case studies and empirical data from manufacturing companies that have undergone ERP implementation. Comparative analyses highlight the variations in operational efficiency before and after ERP adoption, providing a comprehensive understanding of the system’s impact. The findings underscore the positive correlation between ERP implementation and operational efficiency, offering insights that contribute to the body of knowledge in both information systems and manufacturing management. Additionally, the article discusses potential challenges that may persist post-implementation and proposes ongoing strategies for continuous improvement. In conclusion, this article contributes valuable insights into the dynamics of implementing ERP systems in manufacturing companies, shedding light on their transformative impact on operational efficiency and providing a foundation for future research in the field