• Title/Summary/Keyword: ERP implementation

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Effects of Change Management Characteristics on ERP Performance (변화관리특성이 ERP 도입성과에 미치는 영향)

  • 김은홍;김재진;정승렬;전성현
    • Journal of the Korean Operations Research and Management Science Society
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    • v.24 no.4
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    • pp.123-139
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    • 1999
  • Recently, implementing ERP(Enterprise Resource Planning) systems has been one of major concerns of many companies. Despite the trend in the business area, few theoretical researches about the ERP have been published to date. The primary propose of current study, therefore, lies in examining the effects of change management characteristics on ERP performance. Top management support, user participation, and consulting support were selected as change management characteristics. Additionally, ERP implementation characteristics were considered as contingency variables which may moderate the relationships between change management characteristics and ERP performance. Two ERP implementation characteristic variables introeuced in this study were ERP implementation approach and ERP implementation strategy. Hypotheses concerning the relationships among those variables of change management characteristics. ERP performance and ERP implementation characteristics were empirically tested. The findings show that change management characteristics are strongly correlated with ERP performance, and ERP implementation characteristics have contingency effects, partially at least, on the relationship between change management characteristics and ERP performance.

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A Case Study on ERP Adoption in Shipbuilding and Marine Engineering Industry (조선해양 산업에서의 ERP 구축 사례 연구)

  • Jung, Sung Leep;Lee, Jaekwang;Jo, Hyeon
    • Journal of Information Technology Services
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    • v.12 no.1
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    • pp.189-199
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    • 2013
  • As many organizations have adopted and implemented ERP systems, concerns about ERP performance also have increased. Former researches studied the ERP implementation of general large or medium size enterprises but there are not enough studies on ERP systems of a specific industry domain. In this paper, we introduce a case study on ERP adoption methodology of global leading company 'D' in shipbuilding and marine engineering industry. We examined ERP implementation background, method and scope and evaluated ERP performance in perspective of both quantitative and qualitative approaches. Quantitative research usually examines ERP performance based on financial statements and qualitative study typically examines organization change or improvement. As a result, ERP implementation in shipbuilding and marine industry can improve quantitative aspects such as cost, human resource and organization performance. As qualitative analysis, business process and tools can be unified and management transparency can be improved by ERP implementation. The result of this paper will be useful guideline for organizations which are considering ERP systems.

ERP System Education/Training and Other Related Factors Which Have Critical Influence On ERP Implementation Success (ERP 시스템 성공을 위한 ERP 시스템 교육/훈련 및 관련 요인 분석)

  • Kim, Yeong-Real
    • Journal of Korea Society of Industrial Information Systems
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    • v.13 no.3
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    • pp.100-109
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    • 2008
  • In the 1990s and 2000s there was considerable growth in implementation of Enterprise Resource Planning(ERP) Systems. It is estimated that the ERP market will grow to about $65 billion by 2009. Companies expect these systems to support many of the day to day business transactions. However, the implementation projects of ERP are big, strategic and complex projects which involve lots of time, scope and costs. Because of that, companies have to create conditions, in which they can implement chosen solution in expected time, scope and budgeted costs. This means that companies should be aware of what most critical factors for success of ERP implementations are. This study will first investigate the ERP implementation CSFs by studying prior published researches on the field of ERP implementation. Then, this study will discuss in depth some important factors of ERP implementation and represent preliminary results CSFs of ERP implementation empirical survey.

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Influence of IS Planning and Change Management on ERP Implementation Success

  • Moon, Tae-Soo
    • Journal of Digital Convergence
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    • v.7 no.1
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    • pp.149-156
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    • 2009
  • Enterprise Resource Planning (ERP) system is one of key information technology to shape doing business. ERP adoption characteristics like IS planning and change management before ERP implementation are rising in importance, because of gaining competitive advantage. The purpose of this study is to analyze the impact of the characteristics of ERP adoption on ERP implementation success. From previous researches on ERP adoption and implementation, two characteristics of ERP adoption such as IS planning and change management, and 2 dependent variables such as process innovation and business performance, are identified. From data collection processes, 122 samples are collected. The results of hypothesis testing show that organizations with IS plan have higher implementation performance than organizations without IS plan. Also, organizations with the process of change management have higher implementation performance than organizations without the process of change management. Also, The interaction effect between IS planning and change management shows bigger impact in ERP implementation success.

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An Empirical Study on the Influence of Environmental, Organizational, IS Characteristics on Successful Implementation of ERP Systems (환경, 조직, 정보시스템 특성이 ERP시스템의 성공적 구축에 미치는 영향에 관한 실증연구)

  • Moon Tae-Soo;Seo Ki-Chul
    • The Journal of Information Systems
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    • v.15 no.1
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    • pp.73-96
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    • 2006
  • Recently, ERP system is used as a important tool of management innovation for enterprise's survival and development. It is very important to recognize how much influence to organizational performance through ERP system implementation. The purpose of this study is to find out the impact of environmental, organizational, information systems characteristics on successful implementation of ERP systems in Korean SMEs(Small and Medium Enterprises). From previous researches on ERP adoption and implementation, 7 independent variables (competitiveness, government support, top management support, process innovation, project management, IS maturity, and ERP customizing), and 1 dependent variables (successful implementation of ERP systems) are identified. 3 questionnaires were removed from the study because of missing or inappropriate responses, and final samples are 91 SMEs. The results of hypothesis testing show that determinants of successful implementation of ERP systems are top management support and IS maturity. Five variables such as competitiveness, government support, process innovation, project management, and ERP customizing do not significantly influence to successful implementation of ERP systems. The contribution of this study is that it provides an empirical evidence of the causal relationship between ERP adoption factor and ERP success. This study showed that top management support and IS maturity are essential to accomplish successful ERP implementation for SMEs.

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A Case Study on ERP Implementation for e-Business - Perspective of Medium & Small-sized Enterprise - (e-비즈니스를 위한 ERP 구현에 관한 사례연구 - 중소기업을 중심으로 -)

  • 이영민;주상호
    • Journal of the Korea Society of Computer and Information
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    • v.7 no.2
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    • pp.187-195
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    • 2002
  • A Previous ERP studies came up with a number of critical success factors which would be worth referencing at the time of ERP implementation. However, we have not found much work describing the relationship between ERP implementation approaches and ERP effectiveness. We are strongly confident that it is effective to show these managers 'how firms approach' would greatly influence the outcome of BRP endeavor. In this regards, this study aims to show this strong tie empirically. Especially, we are interested in showing why re-engineering efforts ought to be taken prior to or simultaneously with, the ERP implementation. Our main concern was whether BPR efforts were taken with respect to ERP implementation and what roles managers or If managers have taken with respect to both BPR and ERP. In order to Present a more detail Picture of ERP implementation in Korea's S&M enterprise, we further had an intensive case study.

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Understanding the Mismatch between ERP and Organizational Information Needs and Its Responses: A Study based on Organizational Memory Theory (조직의 정보 니즈와 ERP 기능과의 불일치 및 그 대응책에 대한 이해: 조직 메모리 이론을 바탕으로)

  • Jeong, Seung-Ryul;Bae, Uk-Ho
    • Asia pacific journal of information systems
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    • v.22 no.2
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    • pp.21-38
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    • 2012
  • Until recently, successful implementation of ERP systems has been a popular topic among ERP researchers, who have attempted to identify its various contributing factors. None of these efforts, however, explicitly recognize the need to identify disparities that can exist between organizational information requirements and ERP systems. Since ERP systems are in fact "packages" -that is, software programs developed by independent software vendors for sale to organizations that use them-they are designed to meet the general needs of numerous organizations, rather than the unique needs of a particular organization, as is the case with custom-developed software. By adopting standard packages, organizations can substantially reduce many of the potential implementation risks commonly associated with custom-developed software. However, it is also true that the nature of the package itself could be a risk factor as the features and functions of the ERP systems may not completely comply with a particular organization's informational requirements. In this study, based on the organizational memory mismatch perspective that was derived from organizational memory theory and cognitive dissonance theory, we define the nature of disparities, which we call "mismatches," and propose that the mismatch between organizational information requirements and ERP systems is one of the primary determinants in the successful implementation of ERP systems. Furthermore, we suggest that customization efforts as a coping strategy for mismatches can play a significant role in increasing the possibilities of success. In order to examine the contention we propose in this study, we employed a survey-based field study of ERP project team members, resulting in a total of 77 responses. The results of this study show that, as anticipated from the organizational memory mismatch perspective, the mismatch between organizational information requirements and ERP systems makes a significantly negative impact on the implementation success of ERP systems. This finding confirms our hypothesis that the more mismatch there is, the more difficult successful ERP implementation is, and thus requires more attention to be drawn to mismatch as a major failure source in ERP implementation. This study also found that as a coping strategy on mismatch, the effects of customization are significant. In other words, utilizing the appropriate customization method could lead to the implementation success of ERP systems. This is somewhat interesting because it runs counter to the argument of some literature and ERP vendors that minimized customization (or even the lack thereof) is required for successful ERP implementation. In many ERP projects, there is a tendency among ERP developers to adopt default ERP functions without any customization, adhering to the slogan of "the introduction of best practices." However, this study asserts that we cannot expect successful implementation if we don't attempt to customize ERP systems when mismatches exist. For a more detailed analysis, we identified three types of mismatches-Non-ERP, Non-Procedure, and Hybrid. Among these, only Non-ERP mismatches (a situation in which ERP systems cannot support the existing information needs that are currently fulfilled) were found to have a direct influence on the implementation of ERP systems. Neither Non-Procedure nor Hybrid mismatches were found to have significant impact in the ERP context. These findings provide meaningful insights since they could serve as the basis for discussing how the ERP implementation process should be defined and what activities should be included in the implementation process. They show that ERP developers may not want to include organizational (or business processes) changes in the implementation process, suggesting that doing so could lead to failed implementation. And in fact, this suggestion eventually turned out to be true when we found that the application of process customization led to higher possibilities of failure. From these discussions, we are convinced that Non-ERP is the only type of mismatch we need to focus on during the implementation process, implying that organizational changes must be made before, rather than during, the implementation process. Finally, this study found that among the various customization approaches, bolt-on development methods in particular seemed to have significantly positive effects. Interestingly again, this finding is not in the same line of thought as that of the vendors in the ERP industry. The vendors' recommendations are to apply as many best practices as possible, thereby resulting in the minimization of customization and utilization of bolt-on development methods. They particularly advise against changing the source code and rather recommend employing, when necessary, the method of programming additional software code using the computer language of the vendor. As previously stated, however, our study found active customization, especially bolt-on development methods, to have positive effects on ERP, and found source code changes in particular to have the most significant effects. Moreover, our study found programming additional software to be ineffective, suggesting there is much difference between ERP developers and vendors in viewpoints and strategies toward ERP customization. In summary, mismatches are inherent in the ERP implementation context and play an important role in determining its success. Considering the significance of mismatches, this study proposes a new model for successful ERP implementation, developed from the organizational memory mismatch perspective, and provides many insights by empirically confirming the model's usefulness.

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The Approach for ERP Courses into University Curriculum (대학 교과과정에서의 ERP교육 방안)

  • Yoon, Cheol-Ho;Kim, Sang-Hoon
    • Journal of Information Technology Services
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    • v.3 no.2
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    • pp.39-51
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    • 2004
  • Based on investigating and analyzing the cases of advanced foreign universities that have already included ERP courses in their education systems, this study proposed the ways of incorporating ERP courses into Korean universities' curriculums in terms of the following three areas: 1) development of ERP courses, 2) establishment and maintenance of ERP education environment, 3) continuous evaluation and improvement of ERP education implementation. As reasonable ERP courses, "Introduction to ERP" targeted to educating overall basic concepts in ERP system and business administration, "ERP System Implementation" for fostering business process design and system implementation skills, "ERP Programming" such as ABAP for the purpose of customizing ERP system, and "Strategic Use of ERP" dealing with ERP package selection and implementation methodologies of effective utilization of ERP systems were suggested. Regarding the establishment and maintenance of ERP education environment, single server architecture model that contained both database and application was proposed with the intention of set-up cost saving and maintenance efficiency. As for the evaluation and improvement on ERP education implementation, its methodologies were introduced through analyzing the advanced cases. Finally in addition to the above three areas, critical success factors for effectively launching ERP education in the universities were suggested through reviewing the previous case studies.

A Methodology for Global ERP Implementation Based on GSI(Global Single Instance) and Its Application (GSI(Global Single Instance)기반의 Global ERP 구축 방법론 및 적용 사례)

  • Lee, Jae-Kwang;Cho, Min-Ho
    • Journal of Information Technology Services
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    • v.7 no.3
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    • pp.97-114
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    • 2008
  • Many companies have implemented ERP systems to enhance their process competitiveness. Since most ERP systems down to date are implemented and managed on each separated business-unit or company level, such systems run short of the consideration about global business processes and global system managements. In order to integrate a successful global ERP, it is essential to apply the well-systematic implementation methodology which considers global standardization and global IT requirements. It is, however, the actual circumstance that such well-structured methodologies for global ERP implementation are hardly shown not only from domestic site but from foreign one. This paper indicates the global ERP implementation guideline with integrated approach including; the standard process design for efficient execution of global business; the ERP implementation method considering global IT requirements; and, the management method for global system operation. GSI ERP methodology is composed of 3 Phase:Global Strategy Planning, Global Template Construction and Global Roll-Out. Phase1; Global Strategy Planning contains Environment Analysis, GSI direction and Implementation Plan. Phase2; Global Template Construction contains Business blueprint, GSI operation design and Global template implementation. Phase3; Global Roll-out contains local business analysis, local ERP implementation and Global ERP Operation.

A Case Study on the ERP Management and Performance According to the IS Implementation (정보시스템 구축환경에 따른 ERP 관리와 성과에 관한 사례 연구)

  • Sohn, Jung-Hee;Chang, Yun-Hi;Lee, Jae-B.
    • Information Systems Review
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    • v.6 no.1
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    • pp.1-18
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    • 2004
  • In 1990s, many organizations recognized the ERR system as a key enabler of business strategic accomplishment and it can improve productivity and efficiency of organizations by integrating and managing enterprise resources. These organizations tried to implement the ERP system to hold the competitive advantage. And the ERP system leads to business process reengineering. So it is important to consider both organizational environmental characters and change management in the ERP implementation process. This study is examined in detail about organizational environmental characters and change management in the ERP implementation process, seeks how the difference of these factors related to the ERP success. The sampled companies implemented the ERP system by using the different ERP implementation approaches. This study provides that the ERP implementation approach differs from organizational environmental characters, and change management tactics are different according to the ERP implementation approaches. But, some change management factors are important regardless of the ERP implementation approaches. This study also provides the effects on EPR performance through the change management. The study is of service to the organizations implementing ERP and provides practical contribution for managing organizational changes.