• Title/Summary/Keyword: ERP Process

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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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ERP Implementation of Small and Medium Business: Lessons from Secui.com (중소기업의 ERP 시스템 구축 : 시큐아이닷컴 사례)

  • Whang, Jae-Hoon;Kim, Jong-Sun
    • Journal of Korea Society of Industrial Information Systems
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    • v.11 no.5
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    • pp.198-206
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    • 2006
  • It is a time honored value proposition that in rapidly changing business environment, only proactive and active companies will survive. Enterprise resource planning(ERP) system has been a competitive necessity. However, small and medium companies in Korea still need practical guidelines regarding on successful ERP implementation, especially in process issue identification and business goal setting. This case study investigates how Secui.com as an information security company founded in 2000 implemented an ERP system from the strategic perspective. Also it proposes the guidelines of how to establish an information system infrastructure and realize the benefits of IS-based management by ERP implementation.

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ERP-Enterprise Resource Planning: System Selection Process and Implementation Assessment

  • Han, Sung-Wook
    • Industrial Engineering and Management Systems
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    • v.2 no.1
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    • pp.45-54
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    • 2003
  • Enterprise Resource Planning(ERP) systems offer pervasive business functionality the applications encompass virtually all aspects of the business. Understanding and managing this pervasiveness will result in a successful and productive business application platform. Because of this pervasiveness, implementations have ranged from great successes to complete failures. This article has two distinctive parts. The first proposes and discusses a systematic process based on consulting experiences of LG CNS (leading information system company in Korea) for ERP selection. Also, the second provides the key factors that are critical to the successful implementation of ERP. The second part reports the results of a study carried out to assess a number of different ERP implementations in different organizations. A case study method of investigation was used, and the experiences of five Korean manufacturing companies were documented. The critical factors in the adoption of ERP are identified as: learning from the experiences of others, appointment of a process innovator, establishment of committees and project teams, training and technical support for the users, and appropriate changes to the organizational structure and managerial responsibilities.

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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An Analysis of the Importance of the Success Factors in Operation Stage of ERP System (ERP 시스템의 운영단계의 성공요인에 대한 중요도 분석)

  • Yi, Seon Gyu
    • Journal of Service Research and Studies
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    • v.6 no.4
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    • pp.35-45
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    • 2016
  • This study derives the critical success factors through discussion of expert group in operation stage of ERP system that is suggested by the prior study. Relative importance of the derived critical success factors are analyzed using Analytic Hierarchy Process(AHP). In the first layer of the hierarchy, organizational/ human resource factors are appeared to be the most important factors. In the second layer of the hierarchy, CEO support is evaluated as the most important success factor considering the weight of the 1st layer of the hierarchy followed by process optimization, change management, support of the operation department, and maintenance of process innovation organization. This study suggests that, in order to maximize the introducing effect, continuous support and attention of management is not the only requirement. Proper change management to handle the internal environment change caused by the introduction of the ERP system, support of operation department dedicated to ERP system, and separate department for continuous innovation of process are also required.

A Standard Business Process of Resource Planning Systems for Footwear Production (신발생산 자원관리 시스템의 표준 비즈니스 프로세스)

  • 류영근;조남호
    • Proceedings of the Korea Society for Industrial Systems Conference
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    • 2002.06a
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    • pp.56-56
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    • 2002
  • The embodiment of working process fitting in characteristics of business each other in ERP system is indispensable factor. But, general ERP system is not so much profitable for the way of production management of footwear of domestic midge and small company that is dependant on most of the way of OEM production. Therefore, the development of ERP system fitted for present situation of the footwear manufacturing companies is necessary. For this, first, the business process for footwear production, for development of this system, have to be standardize and second, the model of Integrated system process based on standard business process have to be design for programming. In this paper, we proposed a method to build up standard business process and execute BPP in the point of the foundation for introduction and development of the resource planning systems only used by production of footwear and suited to the way of production management of the domestic companies manufacturing footwear. With this, we presented a process model of resource planning systems for footwear production. This study is focused on construction of integrated process model for production resource planning of ERP subsystems and the integrated process model consist of 13 modules.

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A study on Production Process Definition through Problem Analysis of ERP System (ERP 시스템의 문제점 분석을 통한 생산관리 프로세스 정의에 관한 연구)

  • 남승돈;양광모;강경식
    • Journal of the Korea Safety Management & Science
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    • v.5 no.4
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    • pp.97-106
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    • 2003
  • At present, tendency of ERP(Enterprise Resource Planning) enterprises is that many ERP enterprises from abroad are rushing into capture of small and medium enterprises at home actively. SAP Korea and Korean Oracle have already showed their new product targeting domestic market of small or medium standing enterprise, and more, even MS(Micro Soft) also rushes into this market in earnest. The domestic business circle of ERP should prepare countermeasure by raising the perfection of product and having good command of minute marketing strategy to survive from aggressive strategy of SMB market. In addition, about the computerization of main affairs of business, ordering developing process was general that developing staffs analysed the affairs of each department that needed computerization and construct according to the operation process by using different tools, but condition is changing that businesses themselves are purchasing business application package from expert soft program enterprise and construct. Therefore, in this study, I try to grasp the problem of management, and define a new process that can help for more efficient management by making it an object producing and management module of enterprise 'K' that is one of domestic small and medium enterprise and that is operating ERP at present. As well, through the analysis of affair related producing, we are aiming to prepare for establishment of target, its range, and making the standard of result evaluation.

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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Effects of Illuminating Condition on ERP and Work Performance during a Counting Task (계수작업시 사상관련전위 및 작업성능에 미치는 조명조건의 영향)

  • 임현교
    • Journal of the Korean Society of Safety
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    • v.15 no.1
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    • pp.167-175
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    • 2000
  • Work performance and human error are complicated phenomena so that it is very difficult to grasp the true nature of them. However, Event Related Potential (ERP) may give a clue to them because human brain reflects diverse psychophysiological process. In the present study, the possibility of ERP application to the ergonomic area was evaluated in view of grasping error symptoms. For that purpose, the subjects were asked to count specific characters in a random character matrix on a computer monitor, and their ERP was compared with their performance data. Based upon the results, the amplitude of P300 was not so high as that in the case of the Odd Ball tasks, correct response corresponded with stable ERP with high P300 amplitude whereas wrong response did with unstable, fluctuating ERP with low P300 amplitude. Those results coincided with the work performance, and it was concluded that 3-wave fluorescent with illumination level of 800 lux would be recommendable for the counting task in concern. Conclusively, ERP including P300 might supply an objective clue to the problem of human errors in cognitive process.

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Applying Intelligent Agent and Petri Net Modeling Technology to ERT Maintenance (지능형 에이전트와 페트리네트 모형화 기술을 활용한 ERP 유지보수 방법론)

  • 권오병;이재준
    • Journal of Information Technology Application
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    • v.2 no.1
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    • pp.113-137
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    • 2000
  • Even though there is no doubt that ERP(Enterprise Resource Planing) system is a prevailing solution for integrating corporate information, many companies still hesitate adopting ERP system because of a great deal of cost including maintenance cost. In special, unless consulting knowledge that is infused into process reengineering phase or adequately embedded in customized ERP system is upgraded on time, then we cannot guarantee the optimality of system performance. Hence, this paper aims to construct an ERP system that adapts itself to environmental changes that are issued by database and users. To do so, we adopt intelligent agent technology and Petri net theory. The agents autonomously cooperate each other to investigate databases and to find any exceptional changes and analyze how the changes will affect ERP performance. The dynamics of the agents are represented as Petri nets. The newly proposed ERP system is to make corresponding BPR processes maintain optimality. To show the feasibility of the proposed ERP maintenance system, logistics component is described as an illustrative example.

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