Combining ERP systems with enterprise 2.0

The chapter discusses both the complementary factors and contradictions of adoption ERP-based systems with Enterprise 2.0. ERP is well known as IT's efficient business process management. Enterprise 2.0 supports flexible business process management, informal, and less structured interactions. Traditional studies indicate efficiency and flexibility may seem incompatible because they are different business objectives and may exist in different organizational environments. However, the chapter breaks traditional norms that combine ERP and Enterprise 2.0 in a single enterprise to improve both efficient and flexible operations simultaneously. Based on multiple case studies, the chapter analyzes the benefits and risks of the combination of ERP with Enterprise 2.0 from process, organization, and people paradigms. © 2013 by IGI Global.

ERP-rendszerek a számítási felhőben (cloud computing) - A felhőtechnikával összefüggő új ERP-kiválasztási kritériumok elemzése (ERP systems within cloud – Criteria for selection of ERP systems in a cloud environment)

Néhány éve vonult be a köztudatba a cloud computing fogalom, mely ma már a szakirodalomban és az informatikai alkalmazásokban is egyre nagyobb teret foglal el. Ez az új IT-technológia a számítási felhő számítástechnikai szolgáltatásaihoz kapcsolódó ERP-rendszerek szabványosítását, elterjedését eredményezi. A szerzők cikkükben áttekintést adnak a cloud computing mai helyzetéről és a számítási felhőben működő adatfeldolgozó rendszerekkel (kiemelten ERP) kapcsolatos felhasználói elvárásokról, illetve kezdeti, németországi alkalmazási tapasztalatokról. Külön tárgyalják az ERP-rendszerek új kiválasztási céljait és kritériumait, melyek a felhőkörnyezet speciális lehetőségei miatt alakultak ki. _____ The concept of ‘Cloud’ as an IT notion emerged in the past years and proliferated within the business and IT professional community. The concept of cloud gained awareness both in the professional and scientific literature and in the practice of IT/IS world. The cloud has a profound impact on the Business Information Systems, especially on ERP systems. Indirectly, the cloud leads to a massive standardization on ERP systems and their services. In this paper, the authors provide a literature overview about the current situation of Cloud Computing and the requirements established by end-users against the other data processing facilities and systems, outstandingly the ERP systems. The majority of investigated cases are based on samples from Germany. Furthermore, the initial experiences of application are discussed. Separately, the recent selection objectives and criteria for ERP systems are investigated that came into existence because the appearance of Cloud in the IT environment.

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.

An Exploratory Study of Data Quality Management Practices in the ERP Software Systems Context

Quality data are not only relevant for successful Data Warehousing or Business Intelligence applications; they are also a precondition for efficient and effective use of Enterprise Resource Planning (ERP) systems. ERP professionals in all kinds of businesses are concerned with data quality issues, as a survey, conducted by the Institute of Information Systems at the University of Bern, has shown. This paper demonstrates, by using results of this survey, why data quality problems in modern ERP systems can occur and suggests how ERP researchers and practitioners can handle issues around the quality of data in an ERP software Environment.

Enterprise resources planning systems impacts: A Delphi study of Australian public sector

The business value of Enterprise Resource Planning systems (ERP systems), and in general large software implementations, has been extensively debated in both popular press and in the academic literature for over two decades. Organisations invest enormous sums of money and resources in Enterprise Resource Planning systems (and related infrastructure), presumably expecting positive impacts to the organisation and its functions. Some studies have reported large productivity improvements and substantial benefits from ERP systems, while others have reported that ERP systems have not had any bottom-line impact. This paper discusses initial findings from a study that focuses on identifying and assessing important ERP impacts in 23 Australian public sector organizations.

ERP success: Does organisation size matter?

Organisations invest enormous sums of money in acquiring Enterprise Resource Planning (ERP) systems, presumably expecting positive impacts to the organisation and its functions. Despite the optimistic motives some ERP projects have reported nil or detrimental impacts. This paper studies the proposition that the size of an organisation (e.g. small, large) may have contributed to the differences in receiving benefits reported in prior studies in this domain. The alleged differences in organisational performance are empirically measured using a prior validated model, using five constructs and fortytwo sub-constructs. Information is gathered from three hundred and ten respondents representing twenty-seven public sector organisations. Results suggests that (1) larger organisations have received more benefits compared to small organisations, (2) small organisations demonstrated higher reliance on their ERP systems, (3) employment cohorts demonstrate significant differences in perceived benefits in small and large organisations.

Knowledge management for ERP success

The business value of Enterprise Resource Planning (ERP) systems and in general large software implementations has been extensively debated in both popular press and academic literature for over three decades. Despite the positive motives for adoption, various organizations have reported negative impacts from these large investments. This ‘disconnect’ between large IS investments and firms’ organizational performance may be attributable to the economic transition from an era of competitive advantage based on information to one that is based on Knowledge. This paper discusses the initial findings of a two-phased study that focuses on empirically assessing the impact of knowledge management on the success of Enterprise Resource Planning systems. The research study uses information gathered from twenty-seven public sector organizations in Queensland, Australia. Validation of the a priori model constructs through factor analysis identified two dimensions of knowledge management. Further analysis assessed the comparative differences in perceptions of knowledge management in ERP, across four employment cohorts.

A comparative analysis of major ERP lifecycle implementation, management and support issues in Queensland Government

This paper reports on a study of ERP lifecycle major issues from the perspectives of individuals with substantial and diverse involvement with SAP Financials in Queensland Government. A survey was conducted of 117 ERP system project participants in five closely related state government agencies. A modified Delphi technique identified, rationalized and weighed perceived major issues in ongoing ERP life cycle implementation, management and support. The five agencies each implemented SAP Financials simultaneously using a common implementation partner. The three survey rounds of the Delphi technique, together with coding and synthesizing procedures, resulted in a set of 10 major issue categories with 38 sub-issues. Relative scores of issue importance are compared across government agencies, roles (client vs implementation partner) and organizational levels (strategic, technical and operational). Study findings confirm the importance of this finer partitioning of the data, and distinctions identified reflect the circumstances of ERP lifecycle implementation, management and support among the stakeholder groups. The study findings should also be of interest to stakeholders who seek to better understand the issues surrounding ERP systems and to better realise the benefits of ERP.

Maintaining ERP packaged software : a revelatory case study

For many organizations, maintaining and upgrading enterprise resource planning (ERP) systems (large packaged application software) is often far more costly than the initial implementation. Systematic planning and knowledge of the fundamental maintenance processes and maintenance-related management data are required in order to effectively and efficiently administer maintenance activities. This paper reports a revelatory case study of Government Services Provider (GSP), a high-performing ERP service provider to government agencies in Australia. GSP ERP maintenance-process and maintenance-data standards are compared with the IEEE/EIA 12207 software engineering standard for custom software, also drawing upon published research, to identify how practices in the ERP context diverge from the IEEE standard. While the results show that many best practices reflected in the IEEE standard have broad relevance to software generally, divergent practices in the ERP context necessitate a shift in management focus, additional responsibilities, and different maintenance decision criteria. Study findings may provide useful guidance to practitioners, as well as input to the IEEE and other related standards.

A hiccup or a rift? ERP implementation success in Jordan

Like many other developing countries, Jordan is adopting Enterprise Resource Planning (ERP) systems in both its public and private sectors. Jordan's emerging private sector has historically close ties to the public sector, though a global market orientation requires a shift in its organisational culture. ERPs however embed business processes which do not necessarily fit with traditional cultural practices, and implementation success is not assured.. This study looks at the perceptions of both public and private sector ERP implementations in Jordan and assesses these on various measures of success. There were few differences between public and private sectors, but the benefits actually realized in Jordanian ERPs fell short of claims made for the technology in other cultures. Considerable customisation was required in both sectors, and the traditional style of management in Jordan did not fit well with the requirements for successful implementation. This is consistent with recent studies from various countries that show cultural fit is a particularly neglected factor in assessing ERP success.

Detecting collusive fraud in enterprise resource planning systems

In today's technological age, fraud has become more complicated, and increasingly more difficult to detect, especially when it is collusive in nature. Different fraud surveys showed that the median loss from collusive fraud is much greater than fraud perpetrated by a single person. Despite its prevalence and potentially devastating effects, collusion is commonly overlooked as an organizational risk. Internal auditors often fail to proactively consider collusion in their fraud assessment and detection efforts. In this paper, we consider fraud scenarios with collusion. We present six potentially collusive fraudulent behaviors and show their detection process in an ERP system. We have enhanced our fraud detection framework to utilize aggregation of different sources of logs in order to detect communication and have further enhanced it to render it system-agnostic thus achieving portability and making it generally applicable to all ERP systems.

Archival analysis of enterprise resource planning systems : the current state and future directions

Research on Enterprise Resource Planning (ERP) Systems is becoming a well-established research theme in Information Systems (IS) research. Enterprise Resource Planning Systems, given its unique differentiations with other IS applications, have provided an interesting backdrop to test and re-test some of the key and fundamental concepts in IS. While some researchers have tested well-established concepts of technology acceptance, system usage and system success in the context of ERP Systems, others have researched how new paradigms like cloud computing and social media integrate with ERP Systems. Moreover, ERP Systems provided the context for cross disciplinary research such as knowledge management, project management and business process management research. Almost after two-decades since its inception in IS research, this paper provides a critique of 198 papers published on ERP Systems since 2006-2012. We observe patterns on ES research, provide comparisons to past studies and provide future research directions.

Trust in merged ERP and open data schemes in the “Cloud”

Enterprise resource planning (ERP) systems are rapidly being combined with “big data” analytics processes and publicly available “open data sets”, which are usually outside the arena of the enterprise, to expand activity through better service to current clients as well as identifying new opportunities. Moreover, these activities are now largely based around relevant software systems hosted in a “cloud computing” environment. However, the over 50- year old phrase related to mistrust in computer systems, namely “garbage in, garbage out” or “GIGO”, is used to describe problems of unqualified and unquestioning dependency on information systems. However, a more relevant GIGO interpretation arose sometime later, namely “garbage in, gospel out” signifying that with large scale information systems based around ERP and open datasets as well as “big data” analytics, particularly in a cloud environment, the ability to verify the authenticity and integrity of the data sets used may be almost impossible. In turn, this may easily result in decision making based upon questionable results which are unverifiable. Illicit “impersonation” of and modifications to legitimate data sets may become a reality while at the same time the ability to audit any derived results of analysis may be an important requirement, particularly in the public sector. The pressing need for enhancement of identity, reliability, authenticity and audit services, including naming and addressing services, in this emerging environment is discussed in this paper. Some current and appropriate technologies currently being offered are also examined. However, severe limitations in addressing the problems identified are found and the paper proposes further necessary research work for the area. (Note: This paper is based on an earlier unpublished paper/presentation “Identity, Addressing, Authenticity and Audit Requirements for Trust in ERP, Analytics and Big/Open Data in a ‘Cloud’ Computing Environment: A Review and Proposal” presented to the Department of Accounting and IT, College of Management, National Chung Chen University, 20 November 2013.)

Contradictions and the Appropriation of ERP Packages

Enterprise Resource Planning (ERP) software typically takes the form of a package that is licensed for use to those in a client organisation and is sold as being able to automate a wide range of processes within organisations. ERP packages have become an important feature of information and communications technology (ICT) infrastructures in organizations. However, a number of highly publicised failures have been associated with the ERP packages too. For example: Hershey, Aero Group and Snap-On have blamed the implementation of ERP packages for negative impacts upon earnings (Scott and Vessey 2000); Cadbury Schweppes implemented plans to fulfil 250 orders where normally they would fulfil 1000 due to the increased complexity and the need to re-train staff post implementation (August 1999) and FoxMeyer drug company’s implementation of an ERP package has been argued to have lead to bankruptcy proceedings resulting in litigation against SAP, the software vendor in question (Bicknell 1998). Some have even rejected a single vendor approach outright (Light et. al. 2001). ERP packages appear to work for some and not for others, they contain contradictions. Indeed, if we start from the position that technologies do not provide their own explanation, then we have to consider the direction of a technological trajectory and why it moves in one way rather than another (Bijker and Law 1994). In other words, ERP appropriation cannot be predetermined as a success, despite the persuasive attempts of vendors via their websites and other marketing channels. Moreover, just because ERP exists, we cannot presume that all will appropriate it in the same fashion, if at all. There is more to the diffusion of innovations than stages of adoption and a simple demarcation between adoption and rejection. The processes that are enacted in appropriation need to be conceptualised as a site of struggle, political and imbued with power (Hislop et. al. 2000; Howcroft and Light, 2006). ERP appropriation and rejection can therefore be seen as a paradoxical phenomenon. In this paper we examine these contradictions as a way to shed light on the presence and role of inconsistencies in ERP appropriation and rejection. We argue that much of the reasoning associated with ERP adoption is pro-innovation biased and that deterministic models of the diffusion of innovations such as Rogers (2003), do not adequately take account of contradictions in the process. Our argument is that a better theoretical understanding of these contradictions is necessary to underpin research and practice in this area. In the next section, we introduce our view of appropriation. Following this is an outline of the idea of contradiction, and the strategies employed to ‘cope’ with this. Then, we introduce a number of reasons for ERP adoption and identify their inherent contradictions using these perspectives. From this discussion, we draw a framework, which illustrates how the interpretive flexibility of reasons to adopt ERP packages leads to contradictions which fuel the enactment of appropriation and rejection.

An ERP-client benefit-oriented maintenance taxonomy

The worldwide installed base of enterprise resource planning (ERP) systems has increased rapidly over the past 10 years now comprising tens of thousands of installations in large- and medium-sized organizations and millions of licensed users. Similar to traditional information systems (IS), ERP systems must be maintained and upgraded. It is therefore not surprising that ERP maintenance activities have become the largest budget provision in the IS departments of many ERP-using organizations. Yet, there has been limited study of ERP maintenance activities. Are they simply instances of traditional software maintenance activities to which traditional software maintenance research findings can be generalized? Or are they fundamentally different, such that new research, specific to ERP maintenance, is required to help alleviate the ERP maintenance burden? This paper reports a case study of a large organization that implemented ERP (an SAP system) more than three years ago. From the case study and data collected, we observe the following distinctions of ERP maintenance: (1) the ERP-using organization, in addition to addressing internally originated change-requests, also implements maintenance introduced by the vendor; (2) requests for user-support concerning the ERP system behavior, function and training constitute a main part of ERP maintenance activity; and (3) similar to the in-house software environment, enhancement is the major maintenance activity in the ERP environment, encompassing almost 64% of the total change-request effort. In light of these and other findings, we ultimately: (1) propose a clear and precise definition of ERP maintenance; (2) conclude that ERP maintenance cannot be sufficiently described by existing software maintenance taxonomies; and (3) propose a benefits-oriented taxonomy, that better represents ERP maintenance activities. Three salient dimensions (for characterizing requests) incorporated in the proposed ERP maintenance taxonomy are: (1) who is the maintenance source? (2) why is it important to service the request? and (3) what––whether there is any impact of implementing the request on the installed module(s)?