• Title/Summary/Keyword: ERP introduction factors

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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.

Moderating role of the vendor suitability factor for ERP introduction factors and internal performance (공급사 적합성 요인이 ERP 도입요인과 내부성과 간에 미치는 조절적 역할)

  • Kim, Joung-Ju;Yi, Seon-Gyu
    • Journal of the Korea Academia-Industrial cooperation Society
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    • v.15 no.4
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    • pp.2093-2103
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    • 2014
  • The purpose of this study is to investigate how the vendor suitability factor affects ERP introduction factors of domestic small and middle businesses and internal performance. When domestic firms introduce an ERP package, they mostly use the package already developed by ERP firms. Therefore, this study tried to analyze that the suitability factor of an ERP package supplier serves as a moderating role for ERP internal performance. The study result showed that the vendor suitability factor played a moderating role for ERP introduction factors and internal performance. In other words, the vendor suitability factor served a moderating role for four factors -CEO support, education/training, users' IT capability, and business standardization /formulation- and internal performance. But, it was analyzed that the vendor suitability factor didn't serve as a moderating role for IT infrastructure and internal performance.

The Quantitative Effects of ERP Systems in Korean Manufacturing Industry (국내 제조기업의 ERP 시스템 도입의 정량적 성과에 관한 연구)

  • Chang, Hwal-Sik;Park, Kwang-Oh;Choi, Woo-Hyeok;Han, Jung-Hee
    • Management & Information Systems Review
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    • v.26
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    • pp.27-60
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    • 2008
  • Researches on the introduction of ERP system kept on examining the critical successful factors (CSFs) that focus on factors to achieve effectively successful projects, and trying to measuring the actual effectiveness of the introduction of ERP system. However, most of the preceding researches on the effectiveness of the introduction of ERP system that was searching devoted effects has been ceased, and actually even researches on the economical results have just done the basic cognitive evaluation of result indicators by many questionnaires instead of objective measuring values, because of the difficulty of measuring the evaluation of the result. Moreover, researches on positive effects of the introduction of ERP on enterprise results and researches that failed to give advantageous effects showed different results each other. And a part of researches reported that only a part of result indicators were partially affected. In this research, we investigated Korean large enterprises or middle-sized enterprises in manufacture industry that introduces SAP R/3 and Oracle package to compare their quantitative financial results after the introduction of ERP system, in order to measure the effects of the ERP system. First, we evaluated the difference of the quantitative financial results before and after the introduction of the ERP system. Second, we evaluated the opportunities shown by the effects after the introduction of the ERP system. Third, we removed the sample of the exchange crisis (IMF) and executed the additional analysis to reflect the average increasing and decreasing rate in the industry, so that pure evaluation can be achieved. Inherent limits of precedent researches are removed and practical effects of the pure introduction of the ERP system are evaluated, so the research of this research is significant. The result of this research is as follows. Because of the introduction of ERP, the rate of turnover of inventory property has increased and sales of preparation inventory property have decreased so that more effective inventory property management has been achieved. Moreover, preparation sales of labor costs and preparation sales of the number of employees have decreased to show the effect of the reduction of labor costs. However, it could no be concluded that we could increase the profit due to the introduction of ERP system. Due to the introduction of ERP, although we concluded that the return on assets (ROA) and the additional value of one-person employee statistically showed obvious differences and increased, the return on equity failed to show obvious differences after the process of introduction of ERP.

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The Moderating Role of the Strategies Suitability Factor for ERP Introduction Factors and Internal Performance: Focusing on the Small & Medium Transportation Companies (전략의 적합성요인이 ERP 도입요인과 내부성과 간에 미치는 조절적 역할: 중소 운수업체를 중심으로)

  • Kim, Jong-Ju;Yi, Seon-Gyu
    • The Journal of the Korea Contents Association
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    • v.15 no.2
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    • pp.419-432
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    • 2015
  • This study analyzed the moderating role of the suitability factors of corporate strategies and information system strategies targeting small and medium sized transportation companies in Korea. The analytical result has found that the suitable factors of corporate strategies and information system strategies play the moderating role in the ERP introduction factors and internal performance. In other words, the suitability factors of corporate strategies and information system strategies were analyzed to play the moderating role in support of CEOs, education/training, users' IT capabilities, standardization/formulation of business, infrastructure of information technologies, and internal performance. The result of this study based on the above analytical results has found that introduction performance will be maximized when ERP packages are introduced in the small and medium-sized transportation companies and corporate strategies properly harmonize with the introduction strategies of ERP packages in the companies.

A Study on Impact of Introduction Characteristics of ERP Systems on Innovation Diffusion and Business Performance in Public Enterprise (공기업의 ERP시스템 도입특성요인이 혁신확산 및 성과에 미치는 영향에 관한 연구)

  • Lee, Pan-Soo;Shim, Joung-Taek
    • Journal of Korea Society of Industrial Information Systems
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    • v.12 no.5
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    • pp.133-145
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    • 2007
  • This study investigated the relationship between introduction characteristics of ERP system, innovation diffusion and business performance in public enterprise. This study tried to suggest plans that can adapt and use critical impact factors on public enterprise performance though diffusion of ERP systems. This study suggests that introduction characteristics affect on vertical innovation diffusion and organizational performance, directly and indirectly.

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The Importance Analysis on SME's ERP System Introduction Factors (중소기업의 ERP 시스템 도입요인에 대한 중요도 분석)

  • Oh, Sang-Kweon;Yi, Seon-Gyu
    • The Journal of the Korea Contents Association
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    • v.15 no.4
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    • pp.490-499
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    • 2015
  • In this study, for the introduction factors of ERP system suggested in the prior study, I analyzed the importance of each introduction factor by using Delphi methodology and AHP. As a result of analysing the importance of the introduction factors of the 1st layer, the supplier factor was analyzed to be the most important factor among innovation factor, information technology factor, the user factor, the supplier factor, and in the weight analysis on the 2nd layer considering the importance of 1st layer, the standard work model of the supplier factor was a suitable factor, and the CEO participation factor(.086) was analyzed as the second most important introduction factor. These analysis results enable to determine that domestic Small & Medium enterprises' position hope to introduce by selecting a system in which the company characteristics and management strategies are applied well, because they should operate an ERP system that has already been developed, and in this course, the participation of CEO was also found to be a very important factor.

Post Implementation Change Management to Increase Users' Satisfaction on ERP: A Korean Company Case (ERP 도입 후 사용자 만족도 향상을 위한 변화관리 모형에 관한 연구: A사 사례를 중심으로)

  • Shin, Hyun-Sik;Song, Yong-Uk;Kim, Chang-Ki
    • The Journal of Information Systems
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    • v.19 no.2
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    • pp.37-71
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    • 2010
  • This article identifies factors affecting successful ERP systems by focusing on the stages after stabilizing ERP systems and overcoming temporary performance dip by introduction of ERP systems, and suggests change management tactics to control those identified factors. We can not expect that every users are familiar with the usage of an ERP system even after they are informed about the expected advantage of the newly implemented ERP system and trained intensively for changed business process and system usage while implementing a new ERP system. Moreover, even after more than six months usage of the system, the users may still have some trouble due to the reason why they have insufficient information about the expected advantage of the system (recognition gap) and insufficient knowledge about the changed usage of the system (knowledge gap). Hence, this article diagnoses by conducting a case study that those recognition and knowledge gap would have a severe bad influence upon the users' trust and satisfaction on ERP systems. This article suggests an appropriate change management tactics to overcome those recognition and knowledge gap by considering the relationship with the efforts for change management before, during, and after the introduction of ERP systems and performing an in-depth analysis on the users' dissatisfaction and request for update during the stages after the stabilization of the ERP systems. This article also shows a corroborative evidence that these efforts of change management consequently contributes to the solution of users' distrust and dissatisfaction. In sum, this article identifies the factors influencing badly on the magnitude and seriousness of knowledge and recognition gap, and suggests a conceptual research model which says that the satisfaction of ERP users could be uplifted by the solution of their knowledge and recognition gap if we keep making efforts on appropriate change management considering those identified factors during the stages after the stabilization of an ERP system.

A Case Study on the Successful ERP implementation of A Medium-sized Company-Oracle ERP in Standard Telecom Co. (중소기업의 성공적인 ERP 구축 사례연구-STC의 오라클 ERP)

  • Jang, Si-Young
    • Korean Management Science Review
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    • v.15 no.2
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    • pp.71-81
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    • 1998
  • ERP is a new concept which attempts to combine the applications of BRP and information technology in order to enhance the competitive positions of the firms in a rapidly changing environment. It is expected that a paradigm transition will take place which transforms the current practice of in-house development into the introduction of ERP packages. In response to this trend. ERP introduction strategies need to be investigated. This paper reports the case study of Standard Telecom Co. in successfully implementing Oracle ERP applications package. It describes the background, implementation strategy, project management, benefits, and the critical success factors of the Vanguard Project.

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Analysis of ERP System Success Factors Depending on Organizational Culture and Size (기업의 조직문화와 기업의 규모에 따른 ERP 시스템 도입의 성공요인 분석)

  • Jung, Chang-Wook;Kim, Il-Kyoung
    • Journal of Information Technology Services
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    • v.6 no.2
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    • pp.35-47
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    • 2007
  • The purpose of this thesis is to analyze the success factors of ERP system in corporations and to know what is different in the factors depending on organizational culture and size. Considering there are various results from introduction of the same information technology(IT), it is implied that organizational characteristics make a difference. In this thesis we did factor analysis and multiple regression about the factors based on the previous studies and analyzed the priorities depending on organizational culture and size. The results show that mechanistic organization has key success factors of work process change, project team abilities, and determination of CEO while organic organization has those of work process change and project team abilities. Plus bigger sized organization has success factors of work process change, project team abilities, and determination of CEO while small sized organization has those of work process change and project team abilities.

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.