• Title/Summary/Keyword: ERP Success

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Korean Organization ERP System Implementation CSFs: A Delphi Study

  • Kim, Yeong Real
    • Journal of Korea Society of Industrial Information Systems
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    • v.17 no.7
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    • pp.159-166
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    • 2012
  • This study focused on the factors that are critical to Enterprise Resource Planning (ERP) system implementation success. This study employed a Delphi panel to explore the characteristics of ERP project success. The expert panel was comprised of executives from Korean organizations who had participated in and were experienced with ERP implementation projects. The two round Delphi study found the importance of senior management involvement/top management support in project. Additionally, the study found that the same Critical Success Factors(CSFs) existing in large-sized Korean organizations are also applicable to small or mid-sized Korean organizations.

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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An Exploratory Study on the Relative Importances of the Critical Success Factors in an ERP Project (ERP 프로젝트 주요 성공요인의 상대적 중요도에 대한 탐색적 연구)

  • Han, Sang-Cheol;Lee, Gil-Hyung
    • Journal of Information Technology Services
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    • v.4 no.1
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    • pp.57-69
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    • 2005
  • The ERP system which has been adopted as a tool for integration of information systems and for innovation of business process. And it is regarded to be able to maximize the productivity of business process and achieve process innovation based on the best practice incorporated in the ERP. To achieve process innovation through ERP, strong sponsorship from top management and building consensus through the entire organization is required to be backed UP. There are many cases of the failure of Process Innovation due to reluctance of corporate members to change. In the result of the case study, it seems to be difficult to build the consensus of the related groups to ERP project. There are still argues after project, on whether the project was success or not. Through the AHP analysis for the success factors, it is explored that the reason is that several groups of the company had different expectation for the project. And to achieve the aimed process Innovation, the project members in the related departments should build the consensus of expectation on the project.

Managing firm Resources to Create Value: Based on ERP Implementation (가치창조를 위한 기업자원관리: 전사적자원관리 구현을 기반으로)

  • Choi, Byoung-Gu
    • Information Systems Review
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    • v.10 no.3
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    • pp.111-132
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    • 2008
  • Although there are many processes in which factors interact with each other during enterprise resource planning(ERP) implementation, factors affecting ERP implementation have been investigated in an isolated way. In order to bridge the gap, this study attempts to provide a research model to explain how these factors affect ERP implementation success from a holistic perspective. In particular, this research focuses on how bundling and leveraging processes affect ERP implementation success using resource based theory, a strategy formulation framework, and a dynamic resource management model of value creation. The model amalgamates organizational resources and capabilities via the bundling and leveraging processes to identify the effect on ERP implementation success. This paper validates the proposed model by presenting Australian aviation industry case study. Case findings will be in help to reveal the effect of resource bundling in establishing capabilities and effect of capabilities leveraging in deriving the ERP implementation success.

A Case of JTEL's ERP Implementation through ASP (ASP 방식을 통한 제이텔의 ERP도입사례)

  • Hahm, Yong-Seok;Nam, Ki-Chan
    • Information Systems Review
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    • v.4 no.1
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    • pp.19-31
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    • 2002
  • The JTEL's success case of implementing ERP through ASP is studied in this paper. This paper especially presents the detail processes of implementing ERP through ASP and the advantages of that. Critical success factors in this case study are that pre-prepared ERP template and repetitive prototyping methodology was successfully utilized and that end users involved positively and accepted the standard best-practice processes of the ERP template in this project. These factors reduced ERP training periods and also the whole implementation periods, which made the project time quite short and TCO less. Considering these success factors, ASP method provides the advantages of global e-business IT environment, continuous new IT technologies and flexible response to the business changes to the small and medium firms. Finally, the paper suggests the new direction and possibility for small and medium firms focusing on the core competency and utilizing new system infrastructure through ASP method compared with in-house implementation.

A Study on the Effective Implementation of ERP System for Information System upon University Administration

  • Kim, Yeong-Real;Park, Sang-Hwan
    • Proceedings of the Korea Society for Industrial Systems Conference
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    • 2007.02a
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    • pp.82-86
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    • 2007
  • This dissertation searched for a social function and role of university, and problems of information-oriented universities through the analysis of the present conditions of university ERP systems in Korea. The purpose of this study is to find main success factors by investigating case studies on university ERP systems (university own development systems, Korean ERP systems, foreign ERP systems, etc.) and by referring to documentary records on the existing research. Especially this study observed university management. from an innovative aspect by studying success factors for information-oriented university connecting general functions of universities like education, research, and administration service, etc. This study result will suggest outline effective and practical implementation strategies for university administration information systems.

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An Empirical Study on Critical Success Factors and User Performance of ERP Systems: Small and Medium Firms (ERP시스템 구현의 핵심성공요인과 활용 성과에 관한 실증적 연구: 중소기업을 중심으로)

  • Lee, Seog-Jun
    • Asia pacific journal of information systems
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    • v.11 no.4
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    • pp.155-173
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    • 2001
  • This study identified CSFs(Critical Success Factors) for successful ERP system implementation in small and medium firms, and empirically tested relationship between CSFs and user performance. Survey questionnaires were distributed via email & fax to 142 firms that have implemented ERP systems. Out of 52 responded questionnaires, 46 data sets were available for statistical analysis with SPSSWin8.0. CEO's participation, vendor support & service, securing human resources, effective use of software, and hardware capacity were identified as CSFs from factor analysis. Among those factors, vendor support & service and effective use of software were related to user performance, and the relationship was shown to be statistically significant. Study results also showed that user performance of ERP system was significantly different among those surveyed firms when ERP system package products were used as a simple proxy measure of independent variable.

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A New Successful ERP Implementation Strategy for Small and Medium Enterprises (중소기업 ERP 시스템 구축을 위한 산학협력 모텔 제안)

  • 김영렬
    • Journal of Korea Society of Industrial Information Systems
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    • v.7 no.5
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    • pp.49-58
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    • 2002
  • These days the theme of " ERP" has become a topic of special interest in both public and private sectors. Based on the literature survey on M.I.S. and other IT related area, this paper reviewed the ERP Implementation success factors and found that there would be significant differences between large an small business ERP success factors. For the more practical and successful ERP Implementation, this paper proposed a new university-industry cooperation model of ERP implementation for small and medium Enterprises. Other this study related implications were discussed.

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Organizational Citizenship Behavior in the ERP System Context: The Relationships between Work Efficiency, Information Quality, Intention of IT Innovation, and Organizational Citizenship Behaviors (ERP시스템 영역에서의 조직시민행동: 업무효율성, 정보의 질 및 IT혁신의도와의 관계)

  • Yoon, Cheol-Ho
    • Asia pacific journal of information systems
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    • v.16 no.3
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    • pp.29-47
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    • 2006
  • Many companies have been implementing Enterprise resource planning (ERP) systems for their organizational transformation in order to survive and achieve strategic advantages in an increasing competitive business environment. Thus, it is meaningful to identify factors that affect ERP system operation positively. Organizational citizenship behaviors (OCB) are discretionary, extra-role behaviors of employees which go beyond the prescribed formal roles, and are known as to be the contribution factors for organization performance. The purpose of this study is to develop the measurements for the OCB constructs in ERP system context and empirically test the relationships between the OCB construct and ERP system success. The four constructs - altruism, conscientiousness and courtesy, civic virtue, and sportsmanship - and fifteen measurements on the OCB were developed based on previous studies (i.e. Organ 1988) and empirically verified by confirmatory factor analysis. The results of testing the relationships between the OCB and ERP system success show that the OCB have a significant direct impact on the information quality and intention of IT innovation while they have an indirect impact on work efficiency mediated by information quality. This study enhances the OCB model into information system arena and helps better understand the user behaviors of information systems.