• Title/Summary/Keyword: ERP Implementation Process

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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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Effects of the Integration of Phased Activity and Change Management Activity of the Implementation Process on ERP Performance (ERP 구현단계별 활동과 변화관리 활동의 통합이 ERP시스템 도입성과에 미치는 영향)

  • Chang, Hwal-Sik;Park, Kwang-Oh;Han, Jung-Hee
    • Journal of Korea Society of Industrial Information Systems
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    • v.13 no.3
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    • pp.63-86
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    • 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.

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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 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.

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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A Study on the Determination of Key Issues in the ERP - enabled BPR Implementation in Korea (한국기업의 ERP관리 이슈에 관한 탐색적 연구 -A사의 사례를 중심으로-)

  • 김효근;성종선;강소라
    • Journal of Information Technology Applications and Management
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    • v.9 no.2
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    • pp.81-106
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    • 2002
  • As more organizations undertake IT-enabled business process reengineering(BPR), IT-enabled BPR projects become a major concern. Especially, one of IT, Enterprise Resource Planning System (ERP) is recognized as a revolution solution. But the success cases of ERP project are rarely reported. In this study, ERP implementation is defined as a IS implementation project based on BPR concepts To explore the issues of implementing ERP systems, a company implementing ERP successfully in Korea is selected. The research framework consists of four components: 1) strategic plan dimension , 2) organizational environment dimension, 3) implementation process dimension, and 4) IT dimension. On this framework, to implement ERP systems successfully, the analysis of the results clearly suggests appropriate planning, top management support, change management, appropriate methodology , ERP specialist commitment, management of standard process and master data, and the extent of IT localization.

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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.

An Empirical Study on Critical Success Factors in Implementing ERP System (ERP시스템 구축단계 별 주요성공요인에 관한 실증적 연구)

  • 김상훈;최광돈
    • Journal of the Korean Operations Research and Management Science Society
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    • v.26 no.4
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    • pp.1-21
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    • 2001
  • The purpose of this stuffy is to derive critical success factors for ERP system implementation by integrating managerial, technical. human resource and organizational culture factors welch have been proposed as influencing factors for the performance of ERP system implementation in previous studios. Especially, this stuffy divides ERP system implementation process into preparation stave, implement stage and settle-down and stabilization stave, and then derives critical success factors in each stage. The data for empirical analysis of the research model are collected from 64 companies and the respondents for questionnaire consist of ERP system implementation project managers and user department managers in companies which have already operated it after ERP system installation. The main results of this study are as follows. First, it derives 27 success factors through comprehensive review of various factors which may affect ERP system implementation performance, and categorizes them into one of three stapes preparation stave, implement stage, and settle-down and stabilization stage. Second, the relationship between many success factors at each stave (preparation stave, implement stage, and settle-down and stabilization stave) and performance variables is tested. As a result, the significant correlations between many success factors at each stage and ERP system implementation performance are found, and the difference among success factors in the degree of influencing the system performance is significantly shown. finally, the relationship between process-oriented performance variables and result-oriented performance ones is tested. As a result, it is found that there is significant correlation between process-oriented performance variables except for one variable-project resource management appropriateness - and result-oriented performance ones. The theoretical contribution of this study is to derive a comprehensive model of critical success factors for implementing ERP system project from the system deve1opment life cycle perspective, and empirically test it through field survey with a wide range of data collection. And, the practical implication of this study is to present the desirable guidelines for performing ERP system implementation project successfully.

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A Case Study on ERP System Implementation in Samsung Display Devices Co. (삼성전관(주)의 ERP시스템 구축사례)

  • Kim, Sang-Hun
    • Korean Management Science Review
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    • v.15 no.2
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    • pp.91-108
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    • 1998
  • Recently ERP(Enterprise Resource Planning) package has been on of important issues in developing information systems in many Korean companies. The main objectives of this study are to analyse the case of implementing ERP system in Samsung Display Devices Co. which is rated to be successful, and to derive significant implications for effective ERP implementation. First, this study focused on showing the detailed roadmap of performing ERP implementation project which largely consists of 5 stages(planning and organizing, visioning. process redesign and mapping, testing and arrangement, and installation and roll-out to overseas subsidiaries), and explaining key activities in each stage. Second, the performance of this project was evaluated on the basis of both process-centered critieria and result-centered ones. Finally, this study intended to discuss and explicate the bottlenecks and the critical success factors in implementing this project. The findings of this case study are thought not only to be useful as a practical guideline in carrying out ERP implementation project but also to provide significant basis for constructing the theoretical framework of effective ERP implementation.

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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.