scholarly journals Risk Factors When Implementing ERP Systems in Small Companies

Information ◽  
2021 ◽  
Vol 12 (11) ◽  
pp. 478
Author(s):  
Ann Svensson ◽  
Alexander Thoss
Keyword(s):  
Risk Factors ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Resource Planning ◽  
Small Enterprises ◽  
Small Companies ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Implementation Processes

Implementation of enterprise resource planning (ERP) systems often aims to improve the companies’ processes in order to gain competitive advantage on the market. Especially, small companies need to integrate systems with suppliers and customers; hence, ERP systems often become a requirement. ERP system implementation processes in small enterprises contain several risk factors. Research has concluded that ERP implementation projects fail to a relatively high degree. Small companies are found to be constrained by limited resources, limited IS (information systems) knowledge and lack of IT expertise in ERP implementation. There are relatively few empirical research studies on implementing ERP systems in small enterprises and there is a large gap in research that could guide managers of small companies. This paper is based on a case study of three small enterprises that are planning to implement ERP systems that support their business processes. The aim of the paper is to identify the risk factors that can arise when implementing ERP systems in small enterprises. The analysis shows that an ERP system is a good solution to avoid using many different, separate systems in parallel. However, the study shows that it is challenging to integrate all systems used by suppliers and customers. An ERP system can include all information in one system and all information can also easily be accessed within that system. However, the implementation could be a demanding process as it requires engagement from all involved people, especially the managers of the companies.

scholarly journals An Exploratory Performance of Risks Factors for Pre-Implementation of ERP Project in Malaysia

2019 ◽  
Vol 9 (1) ◽  
pp. 3452-3455
Keyword(s):  
Risk Factors ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Risk Model ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
System User ◽  
Risks Factors ◽  
Critical Literature

An Enterprise resource planning (ERP) system is designed to improve operational efficiency by integrating business processes and providing better access to integrated data across the entire organization (Badewi et al., 2018).However, ERP systems are complex, risky to implement, and time consuming (Al-Sabri et al., 2018). Theaim of this paper isto identify the ERP riskemerge in pre-implementationof ERP system through the critical literature review and develop a risk model in order to create value for organization, user and vendor or consultant in managing the ERP project. This research studiescontributes to the literature on ERP risk factors by determining whether these risk factors areaffecting the pre-implementation ERP project success. From the effectiveness and usability perspective, this study will benefits IS management of the companies, system user, researchers, system provider, and ERP system consultant.

Socio-Technical Change Perspective for ERP Implementation in Large Scale Organizations

2018 ◽  
pp. 2975-2987 ◽  
Author(s):  
Jessy Nair ◽  
D. Bhanusree Reddy ◽  
Anand A. Samuel
Keyword(s):  
Organizational Change ◽  
Enterprise Resource Planning ◽  
Large Scale ◽  
Resource Planning ◽  
Business Environment ◽  
Erp Systems ◽  
Erp Implementation ◽  
Firm Level ◽  
Erp System ◽  
Technical Theory

Organizations require to enhance their firm level resources to compete in turbulent business environment. Strategic application systems, such as an Enterprise Resource Planning (ERP) System is one such resource technology that centralizes the database of the organization to enable a seamless view of the organization. However, implementation of ERP systems in organizations has not been a success story for many. ERP systems implementation brings about large scale organizational change and hence it becomes essential for stakeholders to have a reference framework for planning for various dimensions of the organization. Hence this chapter applies a General Morphological Analysis(GMA) to identify the most suitable theory to analyse ERP implementation. Socio technical theory with Leavitt's diamond model was analysed as most appropriate since they are based on the of premises organizational change at firm level. Socio technical organizational change model will enable stakeholders to analyse resources required for core dimensions of the organization for ERP implementation.

An Investigation of Enterprise Resource Planning Implementation in a Small Firm

2013 ◽  
pp. 57-80
Author(s):  
Magdy Abdel-Kader ◽  
Thu Phuong Nguyen
Keyword(s):  
Decision Making ◽  
Small Firm ◽  
Enterprise Resource Planning ◽  
Implementation Process ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp Implementation ◽  
Erp System ◽  
Small Organizations ◽  
Selection Processes

Enterprise Resource Planning (ERP) systems have been recognized as complex and costly, which limited their implementation in large organizations. However, an increasing number of small organizations have recently gained interest in this system. This paper investigates the implementation process of ERP in a small firm. The investigation focused on two perspectives of ERP implementation: successes achieved and problems encountered. Despite many problems encountered in the firm, the ERP system still exists. This gives evidence that small organizations are more flexible and motivated to adapt to change and implement an ERP system. Most problems were encountered at early stages of implementation, which can be minimized if deliberate decision making of ERP implementation and proper selection processes were in place. Further, ERP is a good solution for small organizations if they are able to build a relevant in-house system.

Open and Closed Practicals for Enterprise Resource Planning (ERP) Learning

2011 ◽  
pp. 138-152 ◽  
Keyword(s):  
Enterprise Resource Planning ◽  
Business Processes ◽  
Deep Understanding ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Technological Complexity ◽  
Functional Aspects ◽  
Business User ◽  
Teaching Learning

Enterprise Resource Planning (ERP) systems are implemented in companies to improve their business processes. An ERP system entails extensive functional and technological aspects during its implementation. Teaching ERP systems for computer science students implies addressing these two aspects: ERP functionality and technological features. It is a challenge for teachers to design practical experimentation that students can perform in the teaching environment, due to the prerequisite of a deep understanding of the business processes, business user requirements, and the technological complexity of ERP systems. In order to improve student skills in ERP systems, we encourage active learning among students. In this chapter, we present a methodology using open and closed practicals to learn about both technical and functional aspects of ERP systems. Using these practicals allows us to prepare and organize this teaching/ learning process.

Critical Success Factors of ERP Implementation

2011 ◽  
pp. 758-765
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Critical Success ◽  
Systems Implementation ◽  
Sales And Marketing ◽  
Share Data

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).

Life Cycle of ERP Systems

2005 ◽  
pp. 1844-1849
Author(s):  
Cesar Alexandre de Souza ◽  
Ronaldo Zwicker
Keyword(s):  
Life Cycle ◽  
Enterprise Resource Planning ◽  
Multinational Firms ◽  
Business Processes ◽  
Resource Planning ◽  
Integrated Systems ◽  
Erp Systems ◽  
Erp System ◽  
New Business ◽  
Business Requirements

The 90’s witnessed an impressive growth of Enterprise Resource Planning (ERP) systems in the market of corporate IT solutions. For instance, O´Leary (2000) reports that a single ERP system (SAP´s R/3) is used by more than 60% of the multinational firms. Among the explanations for this phenomenon are the competitive pressures suffered by the companies that have forced them to seek alternatives for cost reduction, differentiation of products and services and integration of their business processes. The ERP systems evolved exploiting the need for quick deployment of integrated systems to meet these new business requirements, while companies were (and still are) under pressure to outsource all the activities that are not embraced by their core business.

Critical Success Factors of ERP Implementation

2005 ◽  
pp. 628-633 ◽  
Author(s):  
Leopoldo E. Colmenares ◽  
Jim O. Otieno
Keyword(s):  
Enterprise Resource Planning ◽  
Success Factors ◽  
Business Processes ◽  
Resource Planning ◽  
Erp Systems ◽  
Erp System ◽  
Critical Success ◽  
Systems Implementation ◽  
Sales And Marketing ◽  
Share Data

An enterprise resource planning (ERP) system is an integrated set of programs that provides support for core organizational activities, such as manufacturing and logistics, finance and accounting, sales and marketing, and human resources. An ERP system helps the different parts of an organization share data and knowledge, reduce costs, and improve management of business processes. In spite of their benefits, many ERP systems fail (Stratman & Roth, 1999). Implementing an ERP system is a major undertaking. About 90% of ERP implementations are late or over budget (Martin, 1998), and the success rate of ERP systems implementation is only about 33% (Zhang et al., 2003).

Enterprise Resource Planning (ERP) Implementation Approaches and the Performance of Procure-to-Pay Business Processes

2017 ◽  
Vol 8 (1) ◽  
pp. 55-71 ◽  
Author(s):  
Ibrahim Kofahi ◽  
Haroun Alryalat
Keyword(s):  
Enterprise Resource Planning ◽  
Quantitative Research ◽  
Business Processes ◽  
Resource Planning ◽  
Big Bang ◽  
Research Approach ◽  
Erp Implementation ◽  
Erp System ◽  
Oracle Erp ◽  
The Impact

In spite of the importance of implementing Enterprise Resource Planning (ERP) system in any organization, there are still many fears of not getting the return on investment from implementing it. In addition, there are many ERP systems implemented in different organizations that claim they did not get enough benefit from these systems. For this reason, this paper is intended to study the impact of ERP implementation approaches (Agile, Big Bang, and Hybrid) on the performance of Procure-to-Pay business processes. This paper adapts the quantitative research approach by using the survey strategy, which is conducted by a questionnaire collected from 91 respondents working in fifteen companies that implement Oracle ERP in Jordan. The researcher uses the SPSS as an analysis technique to test all hypotheses. The findings of the study show that the two ERP Implementation approaches (Big Bang and Hybrid) have a significant impact on the performance of Procure-to-Pay business processes. On the other hand, the study shows that Agile (ERP) implementation approach has no significant impact on the performance of Procure-to-Pay business processes.

A Study on Factors Influencing Enterprise Resource Planning Implementation in Higher Education

2019 ◽  
Vol 16 (2) ◽  
pp. 691-696
Author(s):  
S. Sankaranarayanan ◽  
Jayshree Suresh
Keyword(s):  
Higher Education ◽  
Customer Service ◽  
Enterprise Resource Planning ◽  
Business Processes ◽  
Education Institution ◽  
Resource Planning ◽  
Success Factor ◽  
Erp Implementation ◽  
Erp System ◽  
Purpose Of Business

Enterprise Resource Planning (ERP) systems are commercial software packages that embody and integrate any number of business processes involved in the operation of an organization including but not limited to manufacturing, supply chain, sales, financial, human resources, budgeting, and customer service activity. These modules are developed for the purpose of business organization and there has to be a unique ERP system to support the higher education. There are many higher educational institutions that have implemented ERP system. The review of the study presents that there are very few study which has examined the ERP implementation success factor. The previous studies also indicate that there are unaddressed question which may lead to serious risk. This study may help the institution, and vendor to increase the user effectiveness and success ERP implementation in Higher Education institution.

An integrated framework for ERP system implementation

2017 ◽  
Vol 25 (1) ◽  
pp. 91-109 ◽  
Author(s):  
Kalinga Jagoda ◽  
Premaratne Samaranayake
Keyword(s):  
Enterprise Resource Planning ◽  
Critical Success Factors ◽  
Success Factors ◽  
Resource Planning ◽  
System Implementation ◽  
Erp Systems ◽  
Erp Implementation ◽  
Content Type ◽  
Erp System ◽  
Critical Success

Purpose The purpose of this paper is to propose an alternative integrated approach based on the stage-gate method to implement enterprise resource planning (ERP) systems which will enhance the effectiveness of ERP projects. Design/methodology/approach A literature review was conducted on ERP system implementation and its effectiveness. The need for improving implementation approaches and methodologies was examined. Based on the insights gained, a conceptual framework for ERP system implementation is presented by combining the state-gate approach with the pre-implementation roadmap. Findings The proposed framework aims to enhance the overall ERP implementation outcomes, ensuring critical success factors and eliminating common causes of failures. A pre-implementation roadmap is identified as a key element for eliminating many causes of failure including lack of organisations’ readiness for ERP. The post-implementation stage can be used for further improvements to the system through internal research and development. Research limitations/implications The development of the framework is an attempt to contribute to improving ERP implementation. This research is expected to motivate researchers to work in this area, and it will be beneficial to practicing managers in the identification of opportunities for improvements in ERP systems. Case studies will be valuable to refine and validate the proposed model. Originality/value This paper explores research in a needy area and offers a framework to help researchers and practitioners in improving ERP implementation. This framework is expected to reduce the implementation project duration, strengthen critical success factors and minimise common problems of ERP implementation projects.

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