• Title/Summary/Keyword: ERP customization

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A Strategy on the Successful Customization of ERP Packages (ERP 패키지의 성공적인 커스터마이징 전략)

  • Kim, Byung-Gon;Oh, Jae-In
    • Asia pacific journal of information systems
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    • v.10 no.3
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    • pp.121-143
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    • 2000
  • The enterprise resource planning(ERP) system becomes more popular as a vehicle of realizing an integrated information system, because this system not only facilitates the reengineering of processes in a firm but also provides the function of generating consolidated financial statements. However, ERP vendors have unsuccessfully provided methodologies on the customization of ERP packages although one of the important issues during the implementation of an ERP package is how to customize it. The purpose of this paper is to build a strategy on the successful customization of ERP packages. The result from the analysis of interviews with 25 consultants and experts in the ERP field recommends 14 customization strategies of an ERP package in the four areas of a firm: management, technology, organization, and environment. The analysis of the feedback from the consultants and experts generates the ranking of the 14 customization strategies.

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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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Analysis of Impact on ERP Customization Module Using CSR Data

  • Yoo, Byung-Keun;Kim, Seung-Hee
    • Journal of Information Processing Systems
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    • v.17 no.3
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    • pp.473-488
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    • 2021
  • The enterprise resource planning (ERP) system is a standardized and advanced business process that many companies are implementing now-a-days through customization. However, it affects the efficiency of operations as these customizations are based on uniqueness. In this study, we analyzed the impact of customized modules and processing time on customer service request (CSR), by utilizing the stacked CSR data during the construction and operation of ERP, focusing on small and medium-sized enterprises (SMEs). As a result, a positive correlation was found between unit companies and the length of ERP implementation; ERP modules and the length of ERP implementation; ERP modules and unit companies; and the type of ERP implementation and ERP module. In terms of CSR, a comparison of CSR processing time of CBO (customized business object) module and STD (standard) module revealed that while the five modules did not display statistically significant differences, one module demonstrated a statistically very significant difference. In sum, the analysis indicates that the CBO-type CSR and its processing cost are higher than those of STD-type CSR. These results indicate that companies planning to implement an ERP system should consider the ERP module and their customization ratio and level. It not only gives the theoretical validity that should be considered as an indicator for decision making when ERP is constructed, but also its implications on the impact of processing time suggesting that the maintenance costs and project scheduling of ERP software must also be considered. This study is the first to present the degree of impact on the operation and maintenance of customized modules based on actual data and can provide a theoretical basis for applying SW change ratio in the cost estimation of ERP system maintenance.

An Analysis of the Importance of the Success Factors in Implementation Stage of ERP System

  • YI, Seon-Gyu;Kim, Jong-Ju
    • Journal of the Korea Society of Computer and Information
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    • v.21 no.12
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    • pp.165-171
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    • 2016
  • This study analyzes the relative importance of the introducing factors for the critical success factors in the implementation stage of the lifecycle of ERP system using Delphi technique and Analytic Hierarchy Process(AHP). In the 1st layer of the hierarchy, technical factor is evaluated as the most important factor among organizational, technical, and supplier factors. In the 2nd layer, choosing a proper ERP package is evaluated as the most important factor within 15 factors followed by process-oriented approach, technical suitability, minimized customization, integration and association of system with trading parter, association with legacy systems, and support and involvement of top management. As a result of this analysis enterprise should choose an ERP package that is suitable to its business environment, and make the best use of(take full advantage of) best practice that ERP package provides to optimize the existing business procedure or process(to approach the existing business procedure or process). This study also shows the range of customization of the features provided by the ERP package should be minimized.

A Case Study on the Analysis of Success and Fail Factors for ERP System Build-up (ERP 구축의 성공/실패요인 분석에 관한 사례연구)

  • 박종만;한상찬
    • Journal of the Korea Safety Management & Science
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    • v.2 no.4
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    • pp.71-90
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    • 2000
  • This study proposes strategical, practical guide to build up ERP system through several case studies to large company and comparative analysis of success and fail factors. Key words in paper .is in summary of previous BPR and ERP studies, try to clarify relationship between BPR and ERP, derivative seeking of practical key success factors through several real cases studies to build up ERP system which is in-house development or customization of commercial package.

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A Study on Influence of Corporate Factor and ITO Range Factor on Outsourcing Performance -Moderating Effect of Supplier Suitability

  • YI, Seon-Gyu
    • Journal of the Korea Society of Computer and Information
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    • v.22 no.2
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    • pp.111-117
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    • 2017
  • This study analyzes the relative importance of the introducing factors for the critical success factors in the implementation stage of the lifecycle of ERP system using Delphi technique and Analytic Hierarchy Process(AHP). In the 1st layer of the hierarchy, technical factor is evaluated as the most important factor among organizational, technical, and supplier factors. In the 2nd layer, choosing a proper ERP package is evaluated as the most important factor within 15 factors followed by process-oriented approach, technical suitability, minimized customization, integration and association of system with trading parter, association with legacy systems, and support and involvement of top management. As a result of this analysis enterprise should choose an ERP package that is suitable to its business environment, and make the best use of(take full advantage of) best practice that ERP package provides to optimize the existing business procedure or process(to approach the existing business procedure or process). This study also shows the range of customization of the features provided by the ERP package should be minimized.

Development of the ERP Education System based-on Scenarios CBT (시나리오 CBT 기반의 ERP 교육시스템 개발)

  • 김훈태;정한일;신기태;임춘성
    • Proceedings of the CALSEC Conference
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    • 1999.07b
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    • pp.597-605
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    • 1999
  • 전사적 자원 관리 또는 기업 통합 정보시스템으로 해석되는 ERP(Enterprise Resource Planning) 시스템이 최근 들어 널리 확산되고 있으며, 향후 그 정도가 커질 것으로 예상되고 있어, ERP에 관한 지식을 가진 인력의 요구가 증대되고 있는 실정이다. 이와 같은 필요성을 충족시키기 위해, 본 연구에서는 가상 기업을 대상으로 한 시나리오를 바탕으로 기본적인 업무 흐름과 ERP를 통해 처리될 때의 과정을 업무프로세스, 사용자 화면 및 동영상을 통해 학습할 수 있는 교육시스템을 개발하였다. 본 연구에서 개발된 교육시스템은 크게 ERP 개요, ERP 사용법, 비즈니스 프로세스, 적합화(Customization)의 4부분으로 구성되어 있으며, 향후 Web 환경에서도 쉽게 사용될 수 있도록 수정될 경우 교육의 효과가 클 것으로 기대된다.

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A Study on the Usefulness of Backend Development Tools for Web-based ERP Customization (Web기반 ERP 커스터마이징을 위한 백엔드 개발도구의 유용성 연구)

  • Jung, Hoon;Lee, KangSu
    • Journal of the Korea Convergence Society
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    • v.10 no.12
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    • pp.53-61
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    • 2019
  • The risk of project failure has increased recently as ERP systems have been transformed into Web environments and task complexity has increased. Although low-code platform development tools are being used as a way to solve this problem, limitations exist as they are centered on UI. To overcome this, back-end development tools are required that can be developed quickly and easily, not only from the front development but also from a variety of development sources produced from the ERP development process, including back-end business services. In addition, the development tools included within existing ERP products require a lot of learning time from the perspective of beginner and intermediate developers due to high entry barriers. To address these shortcomings, this paper seeks to study ways to overcome the limitations of existing development tools within the ERP by providing customized development tool functions by enhancing the usability of ERP development tools suitable for each developer's skills and roles based on the requirements required by ERP development tools, such as reducing the time required for querying, automatic binding of data for testing for service-based units, and checking of source code quality.

A Study on Construction of ERP System for Small and Medium sized Design Engineering Company (중소형 설계 엔지니어링사에 적합한 ERP 시스템 구축에 관한 연구)

  • Park, Je-Won;Lee, Hee-Nahm
    • Journal of the Korea Safety Management & Science
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    • v.12 no.3
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    • pp.189-195
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    • 2010
  • ERP system has been spreaded from large companies to many small and medium sized companies, and it is recognized as a basic system for optimum and efficient work process. The focus is moving from manufacturing companies to various specialized companies. Once ERP system was introduced to those specialized companies, there was attempt to customize an ordinary system which used in manufacturing companies, but it was hard to take effect due to the lack of experience and an inadequate analysis of work process. Some of foreign ERP packages are possible to be constructed for some companies. However, they are originally aim at a large enterprise and it is also very difficult to construct and maintain. For this reason, small and midium sized companies are having a difficulty to construct ERP system. This study deals with the construction of ERP system for small and medium sized design engineering company and introduction of the crucial points throughout the construction and requirements for composition module and customization of each main module. Based on the findings of this study, the specialized non-manufacturing companies are expected to have efficient and practical application of ERP system when they select and customize the ERP package of manufacturing companies.

ERP Application Development Using Business Data Dictionary (데이터사전을 이용한 ERP애플리케이션 개발)

  • Minsu Jang;Joo-Chan Sohn;Jong-Myoung Baik
    • The Journal of Society for e-Business Studies
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    • v.7 no.1
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    • pp.141-152
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    • 2002
  • Data dictionary is a collection of meta-data, which describes data produced and consumed while performing business processes. Data dictionary is an essential element for business process standardization and automation, and has a fundamental role in ERP application management and customization. Also, data dictionary facilitates B2B processes by enabling painless integration of business processes between various enterprises. We implemented data dictionary support in SEA+, a component- based scalable ERP system developed in ETRI, and found out that it's a plausible feature of business information system. We discovered that data dictionary promotes semantic, not syntactic, data management, which can make it possible to leverage viability of the tool in the coming age of more meta-data oriented computing world. We envision that business data dictionary is a firm foundation of adapting business knowledge, applications and processes into the semantic web based enterprise infra-structure.

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