The purpose of this paper is to examine the differences in the critical success factors for ERP adoption suggested by the system managers and the ERP consultants. The survey results indicated the following findings. First, there was no significant difference in the relative importance of the critical success factors between the system managers and the ERP consultants. Both groups agree that 'top manager's concern and support' is the most critical factor and that 'user involvement' is the second. However, the system managers tend to think 'training and education of end users' and 'cooperations among the project participants' more important than the consultants do. Second, both groups agree that the most important ERP contribution should be 'improvements in the business processes.' They also agree that the least important aspect is 'ERP's contribution to the individual's productivity.' In overall, the ordered lists of ERP evaluation criteria according to their importances were of no significant difference between the groups. Third the two groups showed differences when they were asked to evaluate the importance of the critical success factors for each of the ERP evaluation criterion. In general, the system managers tend to put more emphasis on 'training and education of end users' and 'adaptation of end users to the changed processes,' whereas the consultants tend to emphasize more on 'top managers' interest and supports' and 'project manager's capabilities and performance.' The differences in the critical success factors presented by the two groups indicated that more efforts need to be devoted to understanding other participant's interests and concerns in an ERP project team. Better coordinations based on the mutual understandings could improve the chance of achieving a success in adopting ERP packages.
Journal of Korea Society of Industrial Information Systems
/
v.13
no.3
/
pp.63-86
/
2008
Recently implementing enterprise resource planning (ERP) systems with packaged business software is growing rapidly. The purpose of this article is to provide further insights into the business process change and change management in implementation process of ERP systems. This paper examine an survey of some 146 firms' adoption and implementation of packaged ERP software. In this paper, we propose an integrated approach of business process change and change management of the implementation process. This research highlights the importance of change management for implementing ERP. In addition, we empirically reveals that the eventual success of ERP systems depends on effective business process change and change management during the ERP implementation.
Proceedings of the Korean Operations and Management Science Society Conference
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2005.10a
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pp.299-320
/
2005
To rapidly respond to uncertainties in the business environment whilst remaining competitive, every organization needs to be able to successfully introduce and manage organizational change. Cognizant of the role of information systems (IS) as an enabler of organizational change, many organizations have paid attention to Enterprise Resource Planning (ERP) systems for successful organizational change primarily because of their change-driving forces across organizations. In this study, we focus attention on the role of readiness for change in the ERP systems adoption. Readiness for change described as views about the need for organizational change is posited to be and antecedent of two expectancies about the need for organizational change is posited to be an antecedent of two expectancies about the system. performance expectancy and effort expectancy, which lead to actual system use. In order to further establish th relevance of readiness for change as a determinant of two expectancies, computer self-efficacy is considered to be other key predictor as well. In addition, this study proposes that the personal characteristics of organizational commitment and perceived personal competence play roles of important determinants of readiness for change. Based on data gathered from the users of the ERP systems, structural equation analysis using LISREL provides significant support for the proposed relationships. Theoretical and practical implications are discussed along with limitations.
Journal of the Korean Operations Research and Management Science Society
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v.31
no.2
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pp.1-13
/
2006
To rapidly respond to uncertainties in the business environment whilst remaining competitive, every organization needs to be able to successfully introduce and manage organizational change. Cognizant of the role of information systems (IS) as an enabler of organizational change, many organizations have paid attention to Enterprise Resource Planning (ERP) systems for successful organizational change primarily because of their change-driving forces across organizations. This study focuses attention on the role of readiness for change in the ERP systems adoption. Readiness for change described as views about the need for organizational change is posited to be an antecedent of two expectancies about the system, performance expectancy and effort expectancy, which lead to actual system use. Based on data gathered from the users of the ERP systems, structural equation analysis using LISREL provides significant support for the proposed relationships.
Purpose - This research aims to examine the effect of e-business adoption on firm's growth and profitability in the distribution industry. The value added from the distribution industry acts as the cost of other industries. As the distribution industry develops, its stage becomes shorter and the distribution margin becomes smaller. Therefore, e-business is expected to have a different effect on the distribution industry than other industries. Research design, data and methodology - The previous research generally used e-business adoption as an independent variable and firm's performance as a dependent variable. This study elaborated the model using a dynamic panel model that includes the performance variable of the previous year as an independent variable. By employing system GMM (Generalized Method of Moments), the endogeneity problem in the dynamic panel model can be solved. For the analysis, I extracted the distribution companies as the raw data in the National Statistical Office's Business Activity Survey over the period 2006 to 2012. Results - The growth rate of firms adopting e-business was 0.299%p higher than that of the non-adopter. However, only ERP (Enterprise Resource Planning), KMS (Knowledge Management System) and SCM (Supply Chain Management) contributed positively to the growth rate. In the case of profitability, it was 0.04%p higher than the distribution companies that did not adopt e-business. ERP and LMS (Learning Management System) improve profitability, while SCM reduces profitability. Consequently, while ERP improves both growth and profitability, SCM improves growth but reduces profitability. In addition, KMS improves firm's growth only, and LMS does only profitability, showing that each e-business has a differentiated effect. Conclusions - Since the distribution industry has different characteristics from manufacturing and other service industries, the introduction of e-business may not guarantee the growth and profitability of distribution companies. Careful introduction considering the characteristics of the distribution industry is required. In particular, it is necessary to select an e-business meeting the characteristics and needs of a distribution company, and thereafter, it is required for the company's own efforts to internalize it within the system.
Purpose Recently, many organizations are actively adopting enterprise architecture (EA) as a methodology to manage IT assets and build IT-based business system. This study intended to empirically examine how the role of EA operating unit and utilization capability of organizational members impact on system performance at the post-adoption stage. A balanced score card (BSC) is being used as a framework for a company's key performance indicator (KPI). Design/methodology/approach This study tried to investigate the causal relationship between the four perspectives of the balanced scorecard as an influencing factor of the introduction of the Enterprise Resource Planning (ERP) on the financial value. In particular, the mediating effect between the customer's point of view and the business process point of view was investigated between the learning growth point of view and the financial point of view, and the interaction effect (regulating effect) of strategic linkage in the system introduction process was investigated. Findings The results of the study were first, that the organizational learning and growth perspective had a positive effect on the customer perspective, business process, and financial perspective. In addition, the customer perspective and the process perspective also had a positive influence on the financial perspective. Second, between the learning growth and financial perspectives, the customer perspective and the process perspective showed a partial mediating effect. Third, as for strategic linkage, the interaction effect between the customer perspective, the learning growth perspective, and the process perspective and the financial perspective was not significant. The results of this study are expected to provide a framework for performance evaluation to organizations that have introduced ERP systems.
Management is under constant pressures to achieve competitiveness in production in most manufacturing companies. The adoption of management techniques(MT) such as TQM, MRP, ERP and so on has been a logical response for better performance to many companies. Besides, these companies commonly adopt a number of such techniques with high expectation for performance improvement. However, expected improvement in performance is not guaranteed unless necessary ingredients exist for those techniques. Many research studies have focused on the nature of successful adoption of management techniques in the past. However, most studies have been related to a single technique and its effects. When more than one techniques are in use in a company, focusing on a single technique limits the value of analysis. This paper focuses the value of MTs adopted in a company in multiplicity and compares the relative characteristics of MTs one another. Especially, the purpose of this paper is to examine the comparative nature of MTs adopted In manufacturing companies and the elements of MT success in relationship with information systems and organizational adjustment for adoption of MTs. The result of the analysis shows that the more efforts are exhorted for the adjustment of information systems and organizational structures to accommodate the MTs, the more success from the adopted techniques results. However, the extent of adjustment for different management techniques differs one another due to the nature of each technique. With regard to the comparative impact of adjustment of information systems and that of organizational structures, the result shows that the latter has more direct and greater impact than the former.
Journal of Information Technology Applications and Management
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v.12
no.2
/
pp.79-106
/
2005
This study, by adopting case study methodology, is focused on examining the present state and analyzing the cause of the digital divide, and suggesting policies for bridging the divide, specifically in view of SMEs. We have taken cases of manufacturing companies, visiting and interviewing 18 SMEs in 10 APEC member economies which show sharp difference in usage of ICT. In order to analyze the digital gap among SMEs, we used 5 variables that are composed of computer hardware, computer software, Internet, readiness of ICT, and performance of ICT adoption, while categorizing the cases into low and high tier based on the national ICT index. From a computer hardware perspective, the high tier (0.66) has almost double the number of PC’s per employee, compared with the low tiers (0.34). This gap can be explained by financial availability of low income and high tariff in the developing economies. In the computer software perspective, the SMEs in the low tier had some restrictive use of computer applications such as financial and accounting management and document management, while those in the high tier enjoyed more diversity in the use of applications such as inventory management, sales management, financial and accounting management, procurement management, CRM, and ERP. In view of the readiness of ICT, the difference in ICT infrastructure and financial status between the low and high tier was far wider than any other variables. As a result of ICT adoption, SMEs benefited in view of learning and growth, internal business processes, customer service, and financial affairs. To effectively bridge the digital divide between the low and high tier, actions such as setting up a secondary market of used computers among cooperating developed and developing countries, developing and diffusing good business applications, and building speedy, low-cost telecommunication infrastructures should be taken.
Journal of the Korea Society of Computer and Information
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v.14
no.4
/
pp.141-152
/
2009
This research conducted research on the provision of the strategic information for the companies' financial and accounting parts among the functions that are provided by the ERP, elements related to the adoption of financial information system that influence and that supports decision-making and management performance. The results of this research are as follows. First, organization's degree of decentralization among the organization structure's characteristics and the element of information technology infrastructure among the information technology characteristics does not affect financial or non-financial performance. Second, financial information characteristics do not affect financial performance partially, Third, organization's size does not play the role of adjuster when it comes to the financial performance. Fourth, some research variables used on this research were not analyzed as important elements that influence financial performance, but the analysis showed that they mostly influence non-financial performance, which means that these are what could be considered strategically when adopting financial information system in the future.
Recently, there is a substantial interest in implementing Business Process Management System(BPMS) among enterprises with the purpose of business process innovation. BPMS redesigns and coordinates business processes in terms of both automated steps and human involvement in order to maximize the value of both involved people and systems. The reason why BPMS is getting attention from top managers is that it has the possibility to optimize the business processes by cycling the process of modeling, execution, monitoring, evaluation, and redesigning work processes. Thus, it has created high expectations about not only productivity improvement but also business process innovation. However. having an innovative nature, which is used for process innovation, BPMS implementation has great potential to stir up employee resistance. The analysis and the discussion about the prevention of the resistance against IS(Information Systems) is important because IS change the way people work and also alter the power structure within the organization, in general. The purpose of this study is to investigate factors that have an impact on the effective adoption of BPMS at the enterprise level. To find out these factors, this study considers two characteristics of BPMS: First. BPMS shares some characteristics with other enterprise-wide IS such as ERP. Second, it has special BPMS-specific characteristics. Due to the lack of previous research on BPMS adoption, interviews were carried out with IT-consultants and CIOs who conducted BPMS projects previously to find out BPMS-specific features that would make BPMS unique when compared to other enterprise-wide IS. As a result, the monitoring function was chosen as the main BPMS-specific factor. Thus, this paper reviewed studies both on enterprise-wide IS adoptions, which applied Technology Acceptance Model (TAM) and secondly on computer based monitoring to find out factors that would influence the employees' perception on the monitoring function of BPMS. Based on the literature review, the study suggested three factors that would have an impact on the employee's perception of the monitoring function: fairness of enterprise evaluation system, fairness of the boss, and self-efficacy of their work. Three factors that would impact the enterprise-wide IS adoption were also set: the shared belief in the benefit of BPMS, training, and communication. Then, these factors were integrated with TAM. Structural equation modeling was used to test hypotheses, out factors that would impact the employees' perception on the monitoring function of BPMS. Based on the literature review the study suggested three factors that would have an impact on the employee's perception of the monitoring function: fairness of enterprise evaluation system, fairness of the boss, and self-efficacy of their work. Three factors that would impact the enterprise-wide IS adoption were also set: the shared belief in the benefit of BPMS, training, and communication. Then, these factors were integrated with TAM. Structural equation modeling was used to test hypotheses. The data analysis results showed that two among three monitoring function related factors - enterprise evaluation system and fairness of the boss - were significant. This implies that employees would worry less about the BPMS implementation as long as they perceive the monitoring results will be used fairly for their performance evaluation. However, employees' high self-efficacy on their job was not a significant factor in their perception of the usefulness of BPMS. This is related to cases that showed employees resisted against the information systems because they automated their works (Markus, 1983). One specific case was an electronic company, where the accounting department workers were requested to redefine their job because their working processes were automated due to BPMS implementation.
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