Do manufacturing firms need informality in ERP post-implementation? A study of Chinese manufacturing sites

Purpose - Enterprise resource planning (ERP) systems are limited due to their operation around a fixed design production process and a fixed lead time to production plan and purchasing plan. The purpose of this paper is to define the concept of informality and to describe the notion of a system combining informality and ERP systems, based on empirical research from four manufacturing case studies. Design/methodology/approach - The case studies present a range of applications of ERP and are analysed in terms of the three characteristics of informality, namely, organisation structure, communication method and leadership approach. Findings - The findings suggest that systems consisting of informality in combination with ERP systems can elicit knowledge fromfrontlineworkers leading to timely improvements in the system. This is achieved by allowing users to modify work procedures or production orders, and to support collaborative working among all employees. However it was found that informality is not required for manufacturers with a relatively stable environment who can deal with uncertainty with a proactive strategy. Research limitations/implications - This study was carried out in China, with four companies as unit of analysis. Future work can help to extend this study across countries. Originality/value - The use of Four dimensions of informality that relate to manufacturers implementing ERP are defined as "technology in practice", "user flexibility", "trusted human networks" and "positive reaction to uncertainty". This is a new construct not applied before to ERP implementations.

Integrating ERP and enterprise social software

Purpose: This study explores the use of a hybrid ERP system, combining an ERP system with enterprise social software (ESS). The study will provide a critical assessment of the implementation of this process technology. Design/methodology/approach: Multiple case studies of organisations based in China were conducted to understand the use of ERP systems in different contexts. Following an evaluation of the context of each ERP implementation (within-case analysis) the research draws a cross-case conclusion that defines the nature of a hybrid ERP system and then synthesises the propositions related to the benefits and challenges of implementation. Findings We find that a hybrid ERP system is able to support efficiency in business process management and also provide a flexible response to changes in business requirements. It does this by allowing for the continued use of informal processes that cannot be incorporated into the ERP system. Practical implications: This research indicates how ERP systems in conjunction with ESS can provide a flexible response to changing business requirements and increase collaboration within the organisation. Key lessons include the need to perform informal activities under the guidance of managers and provide clear boundaries for the implementation of informal activities. Originality/Value: This study has found that the use of case studies can provide a valuable insight into the use of a hybrid ERP system from the perspective of its use within the organisation as a work system that requires an assessment of the context within which organisational members perform their work

Building the hybrid organisation through ERP and enterprise social software

This research traces the implementation of an information system in the form of ERP modules covering tenant and contract management in a Chinese service company. Misalignments between the ERP system specification and user needs led to the adoption of informal processes within the organisation. These processes are facilitated within an informal organisational structure and are based on human interactions undertaken within the formal organisation. Rather than to attempt to suppress the emergence of the informal organisation the company decided to channel the energies of staff involved in informal processes towards organisational goals. The company achieved this by harnessing the capabilities of what we term a hybrid ERP system, combining the functionality of a traditional (formal) ERP installation with the capabilities of Enterprise Social Software (ESS). However the company recognised that the successful operation of the hybrid ERP system would require a number of changes in organisational design in areas such as reporting structures and communication channels. A narrative provided by interviews with company personnel is thematised around the formal and informal characteristics of the organisation as defined in the literature. This leads to a definition of the characteristics of the hybrid organisation and strategies for enabling a hybrid organisation, facilitated by a hybrid ERP system, which directs formal and informal behaviour towards organisational goals and provides a template for future hybrid implementations.

The contradictions and complementarities of combining ERP systems with enterprise 2.0 supported informal systems

The chapter discusses both the complementary factors and contradictions of adopting ERP based systems with enterprise 2.0. ERP is characterized as achieving efficient business performance by enabling a standardized business process design, but at a cost of flexibility in operations. It is claimed that enterprise 2.0 can support flexible business process management and so incorporate informal and less structured interactions. A traditional view however is that efficiency and flexibility objectives are incompatible as they are different business objectives which are pursued separately in different organizational environments. Thus an ERP system with a primary objective of improving efficiency and an enterprise 2.0 system with a primary aim of improving flexibility may represent a contradiction and lead to a high risk of failure if adopted simultaneously. This chapter will use case study analysis to investigate the use of a combination of ERP and enterprise 2.0 in a single enterprise with the aim of improving both efficiency and flexibility in operations. The chapter provides an in-depth analysis of the combination of ERP with enterprise 2.0 based on social-technical information systems management theory. The chapter also provides a summary of the benefits of the combination of ERP systems and enterprise 2.0 and how they could contribute to the development of a new generation of business management that combines both formal and informal mechanisms. For example, the multiple-sites or informal communities of an enterprise could collaborate efficiently with a common platform with a certain level of standardization but also have the flexibility in order to provide an agile reaction to internal and external events.

Enterprise management and ERP development:case study of Zoomlion using dynamic enterprise reference grid

The enterprise management approach provides a holistic view of organizations and their related information systems. In order to cope with the globalization, virtualization, and volatile competitive environment, traditional firms are seeking to reconstruct their organizational structures and establish new IS architectures to transform from single autonomous entities into more open enterprises supported by new Enterprise Resource Planning (ERP) systems. This paper reports on ERP engage-abilities within three different enterprise management patterns based on the theoretical foundations of the "Dynamic Enterprise Reference Grid". An exploratory inductive study in Zoomlion using the narrative research approach has been conducted. Also, this research delivers a conceptual framework to demonstrate the adoption of ERP in the three enterprise management structures and points to a new architectural type (ERPIII) for operating in the virtual enterprise paradigm. © 2010 Springer-Verlag.