• Title/Summary/Keyword: ERP Systems

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A Study of ERP Construction Strategies by System Factors: Based on Case Studies of Korea and China Firms (ERP 시스템적 요인에 따른 성공적인 구축전략에 관한 연구: 한.중 기업 중심으로)

  • Jin, Chang-Hai;Kwon, Young-Jik;Cui, Jun;Lee, Sang-Hoon;Kim, Su-Yeon
    • Journal of Korea Society of Industrial Information Systems
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    • v.17 no.3
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    • pp.69-81
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    • 2012
  • In this paper we analyze ERP systems performance by ERP system factors in two Korea firms and two China firms and propose strategies for successful ERP systems construction. To achieve these goals we conduct a literature review in ERP success factors and implementation strategy and then conduct an empirical analysis focus on three ERP system factors, Ease of Use, Flexibility, and Utilizability of ERP systems, and comparability analysis between Korea and China firms by ERP system factors. Based on these results, we present practical guidelines to construct ERP systems successfully by three ERP system factors in this research.

An Empirical Study of ERP Systems Customizing and Performance of SMEs in Korea and China (한.중 기업의 ERP 시스템 커스터마이징 및 성과에 관한 실증연구)

  • Jin, Chang-Hai;Kwon, Young-Jik;Cui, Jun;Lee, Sang-Hoon;Kim, Su-Yeon
    • Journal of Korea Society of Industrial Information Systems
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    • v.16 no.5
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    • pp.127-136
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    • 2011
  • This paper mainly focuses on an empirical study for performance analysis which is caused by customizing of ERP systems. To conduct this study, four companies are selected in Korea and China, two companies for each country. This paper actually considers four factors for performance analysis of ERP adoption such as financial performance, user satisfaction, competitiveness, and ERP systems adoption, and the analysis of utilization performance is based on nine factors in terms of customizing of ERP systems. As a result of the analyzed results, we conduct comparison analysis about ERP systems customizing of the companies in Korea and China and suggest how to optimally customize for successful ERP systems adoption and application.

Impacts of ERP Systems on Information Capabilities and Business Performance (ERP 시스템 수행이 정보활용역량과 사업성과에 미치는 영향)

  • Hong Sung-Chan
    • Journal of Internet Computing and Services
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    • v.6 no.6
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    • pp.45-56
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    • 2005
  • With rapid advances in IT and introduction to the concept of business process reengineering, many companies have used tremendous resources in implementing ERP systems to improve cost saving and operational efficiency, However, researchers and IT professionals have not clearly explained the roles and values of ERP systems in achieving business objectives. The purpose of the research is to analyze the differences of organizations' performances based on the organizations' ERP readiness, and to identify the roles of ERP systems in enhancing the organizatons' information capabilities and improving business performances, The findings illustrate that ERP systems implementation do not guarantee business performance improvements, and imply that the implementation of ERP systems is likely to enhance organizations' information capabilities, and information capabilities enhanced by the implementation of ERP systems can improve business performances.

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An Empirical Study on the Discrimination of Domestic and Foreign ERP Systems (국내외 ERP시스템의 차별적 만족도에 관한 실증적 연구)

  • 강문식;김영길
    • Proceedings of the Korea Society for Industrial Systems Conference
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    • 2001.05a
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    • pp.84-94
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    • 2001
  • Many enterprises introduced or are planning to introduce the ERP(Enterprise Resource Planning) system to effectively develop processor reform activities of enterprises. Domestic ERP systems are emphasizing high efficiency in environment and work process of domestic enterprises and Foreign ERP systems are emphasizing excellent features. However, It is really doubtful whether or not both domestic and foreign ERP system actually offer discriminatory functions and features. Therefore, this study was conducted to examine differences between the domestic and foreign ERP systems by making an empirical study with domestic and foreign ERP systems users, so that the ERP system can be successfully used in the future and offer necessary to ERP system suppliers for better development.

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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 Study on the Accounting Transparency Financial Characteristics between ERP Systems Implementation and Non Implementation Companies (ERP시스템 도입기업과 미도입기업의 회계투명성 관련 재무적 특성)

  • Choi, Hyun-Dol;Lee, Jang-Hyung
    • The Journal of Information Systems
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    • v.14 no.1
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    • pp.107-124
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    • 2005
  • ERP systems are comprehensive sorfware packages that seek to integrate the complete range of lbusiness processes and functions in order to present a heuristic perspectives of a firm from a single information and information technlogy architecture. The ERP systems have delicate internal controls with built-in devices. It is known that the delicate internal controls help to enhance the accounting transparency. We empirically investigate the relationship between the ERP systems inplementations and an accounting transparency. In order to measure the accounting transparency differences, we compare the ERP systems implementation firms with firms which did not implement the ERP systems by 6 financial ratios (accruals, net profit margin, operation cash folo to sales, total debt to equity, accounts receivable changes, assets quality). Data are collecte from 135 firms implemented the ERP systems and 135 firms non-implemented the systems (the firms listed in the Korea Stock Exchange). We analyze financial statements from 270 firms for the period 2001-2003 to ezamine the 6 financial ratios differences. The results of 810 firms analyses over the 3-year period indicate that the ERP systems implementation firms show the statistically significant differences in the accrual ratio, the net profit margin ratio, operating cash flow to sales ratio, and total debt to equity ratio from the ERP systems non-implementation firms. But there is statistically no differences between the two groups for accounts receivable changes to sales ratio and assets quality.

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A Study on the Critical Success Factors for Each Phase of the Introduction of ERP Systems (ERP시스템 도입 단계별 핵심성공요인에 관한 연구)

  • 유춘번;양효석
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.25 no.3
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    • pp.64-77
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    • 2002
  • In every sectors of industry, the Business Process Reengineering(BPR) has been applied for taking competitive advantage under rapidly changing environment. A company adopting the BPR has begun to consider the introduction of Enterprise Resource Planning ERP systems. ERP systems can integrates many core activities of business, such as manufacturing management, human resource management, financial management, supply chain management by applying the best practices to facilitate a rapid decision-making, cost reductions, and organizational control. Unfortunately, however, many tentative risk factors are existed through each phase of the introduction of ERP systems. As a result, it can bring an enormous benefits to a company or it can be a disastrous for organization. Therefore, two critical questions regarding the introduction of ERP systems should be analyzed before actual introduction has happened. They are "how can ERP systems be introduced successfully\ulcorner" and "what are the critical success factors for each phase of introduction of ERP systems\ulcorner". Through this research, We studied and analyzed the characteristics of critical success factors requiring at each phase of the introduction of ERP systems by applying the questionnaire survey method. Finally, we suggest the list of barriers and critical success factors for each phase of introduction of ERP systems.tion of ERP systems.

A Study of Factors Influencing the Price of ERP System in its Implementation (ERP 시스템 가격산정에 영향을 주는 변수에 관한 연구)

  • 이재정
    • The Journal of Information Systems
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    • v.12 no.1
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    • pp.1-17
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    • 2003
  • ERP is a topic of currency in MIS circle. Numerous organization have developed their information systems using many kinds of ERP packages such as Oracle, SAP R/3, uniERP, etc. However, the pricing methodology of ERP systems is not yet established in a proper way. This paper attempts to investigate factors influencing the price of ERP system. Thirty eight ERP consulting firms participated in this research project. Based on the data from ERP consulting firms, price of ERP systems basically consist of package cost, consulting fee, and customizing expense. The results of this research project are finding factors affecting above three parts that consist price of ERP system. This paper found that factors influencing package price are number of modules, number of users, the degree of package reliability. The factors affecting consulting fee are the degree of project specialty, level of consultants. Finally the factors influencing customizing cost are the degree of project difficulty, project time.

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The Importance of Change Management after ERP Implementation: An Information Capability Perspective (ERP 도입이후 변화관리의 중요도에 대한 연구: 정보역량 관점에서)

  • Lee, Seung-Chang;Lee, Ho-Geun
    • Asia pacific journal of information systems
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    • v.17 no.1
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    • pp.1-31
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    • 2007
  • This research proposes a conceptual framework to highlight the importance of change management after firms implement ERP systems. With ERP, firms need to rework their business processes to make information flow smoothly within organizations. Firms cannot realize expected returns from ERP investments unless changes are effectively managed after ERP systems are put into operation. The research model is empirically tested using data collected from over 170 firms that had used ERP systems at least for more than one year. Our analysis reveals that the eventual success of ERP systems depends on effective change management after ERP implementation, supporting the existence of the 'valley of despair.

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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