Differences in ERP use and value across Iberian Manufacturing and Services SMEs

Enterprise Resource Planning (ERP) system literature reports very little research on post-adoption stages, that is, actual usage and value. Even fewer studies focus on the specificities of an industry analysis. Based on the Technology-Organizational-Environment (TOE) framework and the Resource-Based View (RBV) theory, we develop a research model to measure and examine determinants of ERP use and value and their impact in the Iberian region (Portugal and Spain) across Manufacturing and Services industries in Small and Medium Enterprises (SMEs). The empirical test was conducted through structural equation modelling, using data from 261 firms in the peninsula in the Manufacturing and Service industries. Results show that amongst ERP use determinants, Training is the most important determinant for Service firms and Compatibility for Manufacturing firms. Firm size, Analytics, and Collaboration contribute to ERP Value in both industries, with Analytics being more important for the Service industry. The paper provides insight into which determinants contribute to ERP use and ERP value in Iberian Manufacturing and Services SMEs, offering managerial and academic implications.

Los beneficios de implementar un sistema ERP en las empresas colombianas – estudio de caso

El objeto de este trabajo es establecer, mediante el método de estudio de caso, los beneficios tangibles que para las empresas colombianas puede generar la implantación de un sistema ERP. Se inicia con la revisión del concepto de información, tecnología de información y sistemas de información. En esta parte se efectúa un recorrido teórico de la importancia de los sistemas de información y el diferente tratamiento que se ha dado a este concepto. En la segunda parte, se exploran los sistemas ERP, sus principales características, beneficios, factores críticos de éxito y costos de implantación. Finalmente, en la tercera parte, se presentan los resultados del estudio de caso sobre cinco empresas colombianas, que implementaron sistemas ERP, observando su desempeño individual y frente a las empresas de su subsector económico mediante el uso de 36 indicadores clasificados para medir liquidez, endeudamiento, rentabilidad, actividad y crecimiento.

Action learning through the use of enterprise resource planning system in construction management

Although information communication technology (ICT) tool is long regard as very useful in today’s engineering, architectural and construction management, organizations cannot just only simply operate based upon its origin, but also requires the on-going observation, controlling measures, monitoring aids, adding features and fine-tuning actions to such tool before the desirable outcome can be achieved. However, it is a very common phenomenon that organizations purchase the licensed “off-the-shelf-software” ICT package and customize it to suit their own requirements. Due to the incapability and inefficiency of such software and customization, the possible result is making such tool becomes not user-friendly and obsolete.

The purpose of this paper therefore, as part of the doctoral research, is to review and report those actions taken by a construction organization to enhance the performance of its Enterprise Resource Planning (ERP) system upon launching it since December 2002. Such actions include: improving data inputting method; removing the transition bottleneck; introducing crystallization function; revising the organization’s “Delegation and Limits of Authority”; publishing the “League Table” amongst users; integrating the 3D Modeling into the system and adopting the “Resources Requirement Planning”.

Whilst the ultimate goals of this system are well beyond the time limit of the research project, an obvious interim result, achieved by this case studied organization, was winning a landmark project worth HK$5 billion after the ERP system was functioned effectively. The experience and success of this organization can be borrowed by those companies which are planning to adopt information technology (IT) strategy and use ICT tool in the architectural management system.

Improve construction knowledge management system by using the soft system methodology

The construction industry has a poor record in the management of its knowledge and results into huge wastage of resources and detrimental effect to quality. Research has shown that data and information management system plus knowledge management are a critical part of today's project management practice for construction projects. Few people will deny that 'quality information' and 'useful knowledge' are extremely important to any decision-making. However, the current processes of handling information and knowledge in the construction industry and increasingly costly. One of the major reasons is the nature of this industry is not conducive to good knowledge management and the traditional data/information systems used in the industry has long been critisized. It is very common that information is often duplicated, inconsistent and not current. In turn, making knowledge becomes difficult to manage properly. Project managers have in the past found it very difficult to source and analyse data in order to make sound decisions. This paper is part of a doctoral research project which summarizes three exploratory surveys; namely ERP system, Partnering strategy and Leadership impact of a knowledge management system in a construction company. Those findings are described by using the Soft Systems Methodology (SSM) which later becomes the basis for actions research. SSM is useful to reveal complexities of the knowledge management situations that occur in construction industry. The first stage was to conduct interviews of the different practices in knowledge and reporting process. Then, the SSM rich picture was developed to present the problematic areas including difficulties in inputting data to enable the knowledge platform in place. The research then develops root definition and CATWOE, and a conceptual model was formed. Interviewees were conducted with structured questions to identify prioritized actions and activities that can be undertaken to improve and manage the knowledge platform.

Impact of leadership and power on successful ERP adoption

Case study research investigating the impact of culture upon a Hong Kong based construction contractor's leadership in implementing an Enterprise Resource Planning (ERP) system unearthed rich data relating to the predominantly Hong Kong Chinese cultural perspective of power, leadership and followership. Intimately involved participants were surveyed using both structured and semi-structured interviews. The study's focus was centred upon the interplay between culture, power and how people interact with the way that the ERP is used and how teams of people involved in the ERP implementation, perceived the supportive nature of the organisation's leadership in deploying the ERP. A culturally sensitive empowering leadership style was a significant issue in successfully project managing and deploying the ERP. Understanding how teams and their leaders interact and how power and trust influences the facilitation role of leadership is also useful in gauging how an ERP can be most effectively deployed.

Implementation of enterprise resource planning (ERP) software in a major construction contracting organization in Hong Kong

Purpose – The purpose of this paper is to summarize the scope, methodology and main findings of a doctoral thesis about the implementation of enterprise resource planning (ERP) software in a major construction contracting organization in Hong Kong. This research is taken from a leadership and power and project management (PM) perspective.

Design/methodology/approach – The project adopted a case study approach in which the candidate was an employee/observer, who was embedded as a member of the business transformation team taking an action learning approach to study the ERP adoption. The research used the soft system methodology to identify gaps in the observed maturity level which exists in the organization. Data was gathered using public and private documentation, semi-structured interviews, observation and was validated through review of evidence with participants.

Findings – The results identified the importance of leadership and cultural issues in implementation of the business strategy. This research includes a contribution in two spheres: PM and construction procurement. The first implication for PM theory was to illustrate how knowledge has been efficiently managed within a construction organization by using information communication technology (ICT). It can be represented by the ladder of ICT>ERP>KM>PM. The second implication was to pave the way for the use of partnering strategies in PM practice. It can be represented by the ladder of National Culture>Organizational Culture>Leadership>Partnering Strategy>PM.

Practical implications – This model could be adapted to other large and complex organisational contexts. The research project also has implications as opening up a PM perspective on business transformation.

Originality/value – The contribution of this research is proving the success of adopting KM in a construction company by using an ERP system. The importance of culture in the traditionally collectivistic construction industry, and the issues senior management should take into account when formulating business strategies.

Action research : the use of enterprise resource planning system in construction engineering and project management

Although information communication technology (ICT) is long regard as very useful tool in today’s construction engineering and project management environment, organizations must not only operate based upon its original setting, but also requires on-going observation, additional features and fine is a very common phenomenon that organizations purchase the licensed “off their own business need. Due to the incapability of such software and inefficient customization, the possible result is making that ICT tool not user-friendly and sometimes the whole system becomes obsolete.

The purpose of this paper is to review and report those action organization to enhance the performance of its Enterprise Resource Planning (ERP) system launched in December 2002. Such actions include: improving data inputting method; removing the tran the organization’s “Delegation and Limits of Authority”; publishing the “League Table” amongst users; integrating the 3D Mode into the system and upgrading hardware.

Whilst the ultimate goals of such system are well beyond the time limit of this research study, an obvious interim result, achieved by this case studied organization, was winning a landmark project worth US$500 million after the ERP system was functioned prope and effectively. Their experience and success becomes an exemplar which can be borrowed by those companies, from managerial perspectives and as a roadmap, planning to adopt information technology (IT) strategy and use ICT tool in the construction engineering and project management framework. Singapore, where public housing provisions have been a major concern of their citizens as the building stock gets older.

Sistemas ERP: características, custos e tendências

Muitas empresas estão adotando Sistemas ERP devido a várias razões, tais como: decepção com sistemas incompatíveis, incapacidade do Departamento de Tecnologia de Informação em realizar a integração entre os sistemas existentes atualmente na empresa e outros motivos que influenciam diretamente a competitividade da Empresa. Neste contexto, este artigo apresenta as principais características de Sistemas ERP, suas vantagens e desvantagens, bem como os custos envolvidos na sua implementação. Finalmente, as tendências e o futuro de Sistemas ERP são comentados.

Tempo de implantação de sistemas ERP: análise da influência de fatores e aplicação de técnicas de gerenciamento de projetos

Freqüentemente, a implantação de sistemas ERP é complexa e demorada, requerendo, em alguns casos, três ou quatro anos. em geral, um sistema ERP divide-se em módulos cujas implantações são feitas em vários estágios. Um problema sério é que os prazos para a implantação desses módulos são críticos e raramente são cumpridos. Esses atrasos geram insatisfação dos clientes, pois resultam em custos adicionais não previstos. A implantação de sistemas ERP depende de vários fatores, alguns dos quais têm muita influência nos prazos de implantação. Considera-se neste trabalho a técnica de planejamento de experimentos para a determinação dos principais fatores. Além disso, são usados métodos de caminhos críticos para a identificação das atividades que requerem mais investimentos para que haja redução no tempo total de implantação do projeto.

Análise crítica da implementação de sistema ERP à perspectiva da metodologia de gestão de projetos

Management information systems such as ERP can bring to businesses many competitive advantages. There is a great demand for systems projects to consulting firms that have knowledge to manage this particular type of project. However, the rate of system projects that cannot achieve success is very high. The methodology of Project Management, standardized by the Project Management Institute, is a globally recognized standard and used even in projects involving information technology. In the present study, was made a case study of an ERP system implementation project in a large company, by a consulting firm. From this analysis and on contributions from the literature, recommendations were proposed for the project management, in order to better direct the PMI methodology in large projects involving systems like ERP

A Team-Oriented Investigation of ERP Post-Implementation Integration Projects: How Cross-Functional Collaboration Influences ERP Benefits

The benefits companies achieve by implementing an ERP system vary considerably. Many companies need to adapt their ERP integration solution in the post-implementation stage. But after the completion of such a usually very complex integration project, benefits do not emerge by all means. A misfit between the organization and the IS, especially the aspect of cross-functional team collaboration, could explain these divergences. Using an initial theoretical framework, we conducted a single case study to explore the team-oriented perceptions in a post-implementation ERP integration project. To analyze the benefits and the influences in greater depth we disentangled the integration benefits into their particular parts (process, system and information quality). Our findings show that post-implementation ERP integration changes are not always perceived as beneficiary by the involved teams and that cross-functional collaboration has an important influence.

Rethinking ERP-Outsourcing Decisions for Leveraging Technological and Preserving Business Knowledge

During the selection, implementation and stabilization phases, as well as the operations and optimization phase of an ERP system (ERP-lifecycle), numerous companies consider to utilize the support of an external service provider. This paper analyses how different categories of knowledge influence the sourcing decision of crucial tasks within the ERP lifecycle. Based on a review of the IS outsourcing literature, essential knowledge-related determinants for the IS outsourcing decision are presented and aggregated in a structural model. It will be hypothesized that internal deficits in technological knowledge in comparison to external vendors as well as the specificity of the synthesis of special technological and specific business knowledge have a profound impact on the outsourcing decision. Then, a classification framework will be developed which facilitates the assignment of various tasks within the ERP lifecycle to their respective knowledge categories and knowledge carriers which might be internal or external stakeholders. The configuaration task will be used as an example to illustrate how the structural model and the classification framework may be applied to evaluate the outsourcing of tasks within the ERP lifecycle.

Enterprise resource planning and the post bureaucratic organization:'formalization' as trust in the system versus 'solidarity' as trust in individuals

Purpose – The purpose of the paper is to use a case study setting involving the implementation of an enterprise resource planning (ERP) system to expose and analyze the conflicts in the characterizations of the post bureaucratic organisation (PBO) in the literature. ERP implementations are often accompanied by increasing levels of stress in organizations that place pressures on organizational relationships and structures. Additionally, ERPs are regarded as introducing their own techno-logic of centralization, standardization and formalization that provides an apparent contrast to the exhortations about employee empowerment. Design/methodology/approach – A case study of ERP implementation in a medium-sized entity is presented. The paper explores aspects of ERP and PBO from the context of postmodern organization theory. Findings – Some concerns about PBO identified in the literature are reflected in the case situation. For example, there is a commitment to give up private time and work flexibly by some employees. The paper also provides evidence of the way the management team substitute their reliance on a key individual knowledge worker for that of an ERP system and external vendor support. Paradoxically, trust in that same knowledge worker and between core users of the system is essential to enable the implementation of the system. Originality/value – This paper adds empirical insight to a predominantly theoretical literature. The case evidence indicates some conflicting implications in the concurrent adoption of PBO and ERP.

Combining an enterprise resource planning system and informality:a study of efficiency and flexibility complmentarity [sic]

DUE TO COPYRIGHT RESTRICTIONS ONLY AVAILABLE FOR CONSULTATION AT ASTON UNIVERSITY LIBRARY AND INFORMATION SERVICES WITH PRIOR ARRANGEMENT One of the current research trends in Enterprise Resource Planning (ERP) involves examining the critical factors for its successful implementation. However, such research is limited to system implementation, not focusing on the flexibility of ERP to respond to changes in business. Therefore, this study explores a combination system, made up of an ERP and informality, intended to provide organisations with efficient and flexible performance simultaneously. In addition, this research analyses the benefits and challenges of using the system. The research was based on socio-technical system (STS) theory which contains two dimensions: 1) a technical dimension which evaluates the performance of the system; and 2) a social dimension which examines the impact of the system on an organisation. A mixed method approach has been followed in this research. The qualitative part aims to understand the constraints of using a single ERP system, and to define a new system corresponding to these problems. To achieve this goal, four Chinese companies operating in different industries were studied, all of which faced challenges in using an ERP system due to complexity and uncertainty in their business environments. The quantitative part contains a discrete-event simulation study that is intended to examine the impact of operational performance when a company implements the hybrid system in a real-life situation. Moreover, this research conducts a further qualitative case study, the better to understand the influence of the system in an organisation. The empirical aspect of the study reveals that an ERP with pre-determined business activities cannot react promptly to unanticipated changes in a business. Incorporating informality into an ERP can react to different situations by using different procedures that are based on the practical knowledge of frontline employees. Furthermore, the simulation study shows that the combination system can achieve a balance between efficiency and flexibility. Unlike existing research, which emphasises a continuous improvement in the IT functions of an enterprise system, this research contributes to providing a definition of a new system in theory, which has mixed performance and contains both the formal practices embedded in an ERP and informal activities based on human knowledge. It supports both cost-efficiency in executing business transactions and flexibility in coping with business uncertainty.This research also indicates risks of using the system, such as using an ERP with limited functions; a high cost for performing informally; and a low system acceptance, owing to a shift in organisational culture. With respect to practical contribution, this research suggests that companies can choose the most suitable enterprise system approach in accordance with their operational strategies. The combination system can be implemented in a company that needs to operate a medium amount of volume and variety. By contrast, the traditional ERP system is better suited in a company that operates a high-level volume market, while an informal system is more suitable for a firm with a requirement for a high level of variety.

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