A multicriteria approach for risks assessment in ERP maintenance

Enterprise resource planning (ERP) systems cannot remain static after their implementation, they need maintenance. ERP maintenance is a key process required by the rapidly changing business environment and the usual software maintenance needs. However, these projects are highly complex and risky. So, the risks management associated with ERP maintenance projects is crucial to attain a satisfactory performance. Unfortunately, ERP maintenance risks have not been studied in depth. For this reason, this paper presents a general risks taxonomy. It gathers together the risks affecting the performance of ERP maintenance. Moreover, the authors use the analytic hierarchy process (AHP) methodology to analyze the risks factors identified. It helps managers, vendors, consultants, auditors, users and IT staff to manage ERP maintenance better. Results suggest that the most critical stage in ERP maintenance is the first phase, which receives, identifies, classifies and ranks the software modification. The most important hazards in ERP maintenance are the cooperation and commitment of ERP users and managers.     

Using Fuzzy Analytic Network Process to assess the risks in enterprise resource planning system implementation

The aim of this paper was to evaluate the risk level for both intra-organizational cultures and for different industries in implementing an enterprise resource planning (ERP) system. This study adopts the Fuzzy Analytic Network Process (FANP) method to assess ERP implementation risks, which were categorized into four dimensions: management and execution, software system, users, and technology planning. An empirical survey was conducted that utilized the collected survey data of 20 ERP experts in Taiwan to assess, rank, and improve the critical risks of ERP implementation via the FANP method. Based on the results of the FANP method, a follow-up survey of ERP end-users in different departments of three industries was conducted to assess how intra-organizational cultures and cross-industries affect users’ perceived risks a real world scenario. Our research results demonstrated that “lack of management support and assistance” is vital risk for a successful ERP implementation. Top management support and involvement are crucial and essential factors to the success of a firm's ERP implementation. “Ineffective communication with users” was found to be the second highest risk factor. The benefits of using the FANP method for evaluating the risk factors come from the clear priority weights between alternatives. Finally, this study provides suggestions to help enterprises decrease ERP risks, and enhance the chances of success of ERP implementations among intra-organizational cultures and across-industries.     

Modeling maintenance projects risk effects on ERP performance

Worldwide organizations have made important efforts to replace their legacy information applications by ERP (Enterprise Resource Planning) solutions. However, a suitable system implementation does not guarantee the ERP adoption success. This also depends on the modifications carried out in the system during the ERP maintenance. The implementation process of these changes is risky and may negatively affect application performance. Therefore, practitioners must handle the existing ERP maintenance risks in order to preserve the system performance. Hence, we propose an innovative and flexible technique to manage risks impacts on ERP performance.     

基于AHP层次分析法评估制造业ERP项目风险

ERP系统实施的风险评估一直是确保企业成功实施ERP的关键。根据国内企业实施ERP系统的现状,通常可掌控的风险有软件风险、实施风险和管理风险等企业内部风险。因此该文针对ERP软件选型影响因素众多,且评价信息具有模糊性的特点,在此基础上引入AHP层次分析法建立ERP系统实施风险评估模型,对ERP实施过程中的风险进行评估,应用AHP算法找出影响实施成功的关键风险因素。     

ERP实施风险分析与管理

ERP体现了当今国际上先进的企业管理理论，是企业信息化集成的最佳方案。然而，目前普遍存在着ERP系统实施成功率不高的状况。本文分析了ERP实施阶段存在的主要风险，并提出了风险管理对策。     

Organisational learning—a critical systems thinking discipline

This paper deals with the application of critical systems thinking in the domain of organisational learning and knowledge management. Its viewpoint is that deep organisational learning only takes place when the business systems' stakeholders reflect on their actions and thus inquire about their purpose(s) in relation to the business system and the other stakeholders they perceive to exist. This is done by reflecting both on the sources of motivation and/or deception that are contained in their purpose, and also on the sources of collective motivation and/or deception that are contained in the business system's purpose. The development of an organisational information system that captures, manages and institutionalises meaningful information—a knowledge management system—cannot be separated from organisational learning practices, since it should be the result of these very practices. Although Senge's five disciplines provide a useful starting-point in looking at organisational learning, we argue for a critical systems approach, instead of an uncritical Systems Dynamics one that concentrates only on the organisational learning practices.We proceed to outline a methodology called Business Systems Purpose Analysis (BSPA) that offers a participatory structure for team and organisational learning, upon which the stakeholders can take legitimate action that is based on the force of the better argument. In addition, the organisational learning process in BSPA leads to the development of an intrinsically motivated information organisational system that allows for the institutionalisation of the learning process itself in the form of an organisational knowledge management system. This could be a specific application, or something as wide-ranging as an Enterprise Resource Planning (ERP) implementation. Examples of the use of BSPA in two ERP implementations are presented.     

Implementing enterprise resource planning systems: organizational performance and the duration of the implementation

This paper examines the impact of the duration of ERP implementation on firm performance both during and after implementation. Organizations choose either an accelerated implementation approach or a traditional (longer) implementation approach. The former approach gives the organization the advantage of speed, but the disadvantage of fitting its processes to that of a packaged (thus, undifferentiated from competitors) ERP. The latter approach allows the organization to redesign strategy and processes, and thus, search for ways to be unique from its competition. The study uses a regression model to capture the changes in various performance measures during and after implementation between firms that implemented the ERP, using the performance measure of a matched group of firms that did not implement an ERP as a benchmark/control sample, on the basis of the duration of the implementation. Financial data from Compustat, and data on start date and end date of ERP implementation between 1990 and 2005 for firms in the Oil and Gas industry was collected from an ERP vendor. Results show that measures such as return on sales improved after implementation. However, measures such as inventory turnover, which reflect operational benefits, improve during implementation. We find that accelerated implementation confers both operational and strategic benefits. This study highlights the strategic consequences of the different choices of implementation.     

A step-by-step performance assessment and improvement method for ERP implementation: Action case studies in Chinese companies

The implementation of enterprise resource planning (ERP) is a complex process, and the failure rate remains very high. The literature has reported over 80 critical success factors for ERP implementation, but companies typically do not know to exploit them. In this article, a step-by-step assessment and improvement method for ERP implementation is proposed and applied in three companies. First, a five-stage ERP implementation model is proposed. Second, about 80 critical success factors (CSFs) from the literature are elaborated into key performance indices (KPIs), which are associated with each stage of ERP implementation by ten local ERP experts. Third, the weights of the KPIs are calculated using the Dumpster–Shafer method and the evaluation of ten experts. During the implementation process, performance is measured at each stage and remedial actions are identified if the performance is below expectation. An implementation flowchart is developed based on a five-stage model and the philosophy of continuous improvement. Three action cases in Chinese manufacturing companies are conducted to illustrate the effects of the assessment model, which is also currently being used by a consulting company specialising in ERP implementation. With further evaluation by local experts, the model has the potential to serve as a guideline for ERP implementation in other countries.     

自组织柔性ERP研究

制造企业结成自组织制造网络,以提高自身的柔性和快速反应能力,应对复杂、多变的混沌环境的挑战。面向事务处理的经典ERP系统,不能有效支持企业在混沌环境下不断变化业务模型及业务模型的持续改进。提出了基于Mul-ti-agent的自组织柔性ERP(SOF-ERP),SOF-ERP不仅是可执行代码的集合,而且是模型与软件组件的集合。基于Multi-agent技术和CORBA规范的组件化SOF-ERP具有分散化、智能化决策与预测能力,实现了软件系统的自适应性修改,提高了系统对环境的适应性和演化能力,解决了异构企业信息集成的兼容性问题,降低ERP实施的复杂性,促进企业向自组织柔性企业的演化。实施案例证明了其可行性。     

Using immune designed ontologies to monitor disruptions in manufacturing systems

Manufacturing systems are subject to several kinds of disruptions and risks, which may break the continuity of workflows, disturb pre-set organization, and prevent the production system from reaching its expected levels of performance. Several approaches were proposed to deal with manufacturing system disruptions and risks. Unfortunately, most of them focus more on explaining the causes of the disruption/risk, rather than on determining disruption/risk effects on workflows, pre-set organization and expected performance. Existing approaches usually operate off-line, thus missing current and accurate data about plant activities and changing conditions. Most of them do not offer concepts that allow the design of computerized tools dedicated to disruption/risk monitoring and control. In this paper, we rely on biological immunity to guide the design of a knowledge-based approach, and to use it to monitor disruptions and risks in manufacturing systems. The suggested approach involves functions specifically dedicated to deal with a variety of disruptions and risks, such as detection, identification of consequences and reaction to disruptions. This architecture is intended to be embedded within industrial information and decision support systems, such as ERP (« Enterprise Resource Planning ») and MES (« Manufacturing Execution System »). A prototype implementation using ontologies and multi-agent systems shows the relevance of the suggested approach in monitoring disruptions and risks. A simplified example from the steel industry illustrates the kind of support that can be provided to decision makers.     

Community Collaboration for ERP Implementation

The paper discusses the enterprise resource planning (ERP).ERP implementation solves business problems by customizing and integrating off-the-shelf enterprise software packages. A successful ERP implementation involves extensive collaboration and communication among the customer, implementation consultancy, and software vendor. Collaboration allows implementation personnel from different organizations to utilize each other's experiences. An example of this is the Web 2.0. A Web 2.0 knowledge repository system can reduce costs, improve quality, and lower the risks of ERP implementations.Through the case study, the key desired features for Web 2.0 knowledge repository system to support ERP implementations were defined. Epics was designed to fulfill these requirements and developed a prototype. Epics can be used by software vendors, ERP consulting firms, and ERP users. Human aspects play a critical role in ERP implementation. ERP implementation quality depends largely on how the implementation personnel's knowledge and past experiences are reused and communicated. Although knowledge reuse, collaboration, and communication are important for all software projects, they're particularly critical in ERP implementation owing to its unique challenges.     

Managing the full ERP life-cycle: Considerations of maintenance and support requirements and IT governance practice as integral elements of the formula for successful ERP adoption

Companies adopting enterprise resource planning (ERP) systems have often focused primarily on implementation-related factors while neglecting those of post-implementation. As a result, the usefulness and operation of the ERP systems, once installed, are compromised. This research adopted a case study approach to demonstrate that ERP adoption efforts that fail to pay attention to post-implementation requirements (especially those relevant to maintenance and support (M&S)) from an early stage in the project lifecycle will face dire consequences. It points out that poor planning and management of M&S services can imperil the normal operations of an ERP system and the daily activities of a business. With the life span of ERP systems getting shorter, sound M&S practices can extend their life and create a stable system platform to support efficient and effective business operations. M&S issues deserve to be considered as integral elements among the critical success factors (CSF) of ERP adoption projects. In other words, ERP success requires a full lifecycle perspective to be taken by adopting companies. With lessons having been learned from the mistakes in the first project, the company in this case study revamped its ERP implementation second time out, with due consideration being given to M&S strategies and practices from project initiation onward in order to realize a stable, usable, and maintainable system. The case study explores and identifies the critical success factors (CSF) of ERP adoption, and shows that M&S must be included as a key element from the outset and throughout the system lifecycle. Our findings capture a great deal of experience for any ERP adopting companies to follow in order to avoid learning costly lessons both in implementation and subsequent M&S throughout the lifespan of the system. A set of propositions is also presented for academic researcher to consider in future ERP research endeavors.     

The critical success factors for ERP implementation: an organizational fit perspective

Since early 1990s, many firms around the world have shifted their information technology (IT) strategy from developing information systems in-house to purchasing application software such as enterprise resource planning (ERP) systems. IT managers responsible for managing their organization’s ERP implementation view their ERP systems as their organizations’ most strategic computing platform. However, despite such strategic importance, ERP projects report an unusually high failure rate, sometimes jeopardizing the core operations of the implementing organization. This study explores the root of such high failure rate from an “organizational fit of ERP” perspective. Based on the relevant literature, we define the concept of organizational fit of ERP and examine its impact on ERP implementation, together with ERP implementation contingencies. The results from our field survey of 34 organizations show that ERP implementation success significantly depends on the organizational fit of ERP and certain implementation contingencies.     

ERP evaluation during the shakedown phase: lessons from an after-sales division

Abstract.  Integrated information systems and operational efficiency are both pivotal issues for contemporary firms. While there is substantial evidence that enterprise resources planning (ERP) systems can deliver related improvements, the implementation of these systems can turn out to be a very complex and risky task. One key aspect of managing these risks is maintaining operational momentum and preventing possible problems from escalating in the so-called shakedown phase shortly after system implementation. The objective of this paper is to examine how user evaluations of ERP system success could be used to trace down the source of potential problems, which can arise during the shakedown phase, and how and why experienced system success might vary between different user groups. The paper builds on a case study completed in the after-sales division of a large multinational organization. This context is considered a fruitful empirical setting for the study as the business sets enormous demands for ERP system functionality and its smooth implementation. Based on the case study, it is argued that in such a context the importance of sufficient user skills, data reliability and intra-organizational communication becomes emphasized in the ERP implementation process. Moreover, results illustrate how downstream operations and customer relations are particularly vulnerable to problems accumulated in upstream business processes. Related problems can potentially form a self-fulfilling cycle, where the lack of skills and information constantly deteriorates both user perceptions and actual operational performance.     

Modeling use of enterprise resource planning systems: a path analytic study

In this research, we evaluated user participation and involvement in the context of enterprise resource planning (ERP) systems. Since ERP systems are enterprise-wide in scope, these systems have a high level of complexity, and require a different implementation methodology. While most studies analyze implementation at an organization or industry level, there is a dearth in research in ERP system adoption at the individual or user level. In our study, we examine ERP system acceptance at the individual level. In this research, we expected to find differences in the nature of user participation and involvement in ERP compared to other information systems. Using Barki and Hartwick's extension of the theory of reasoned action, a revised model was developed and tested empirically. While Barki and Hartwick's model explains user behavior vis-à-vis user participation and involvement, a more parsimonious model demonstrates that usage dynamics in ERP implementation are different. We complemented our statistical analysis by three case studies. Based on our results we believe that, given the nature of ERP and its implementation, traditionally formalized links between influencers of users' attitude and involvement may need to be revised. We have discussed why we need to seek alternate forms of influencers. In doing so, we suggest that investments be made in preparatory work practices and employee development prior to ERP decisions. Such investments are complementary to information technology and are widespread throughout the firm. We believe that such investments will play a significant role in influencing the attitude of users toward any system and also their involvement.     

The development of an enterprise resources planning system using a hierarchical design pyramid

Today, manufacturers are measured by their ability to respond quickly to sudden, often unpredictable changes in customer needs and wants. Competition beyond the twenty-first century places an increased emphasis upon receiving business information that is accurate and up to date. In order to achieve this, a business planning and closed-loop manufacturing execution system must reflect how work is done, in order to support the overall business objectives without being limited by any hardware, software and human resource constraints. Enterprise resources planning (ERP) is considered to be the most effective computer application in the modern manufacturing industry which meets these requirements. However, only a few manufacturers can design and implement the system successfully. They encounter various problems during the design and implementation cycle. One of the major reasons why they cannot implement the system successfully is the inappropriate use of design and implementation methodology. A systematic design and implementation methodology is therefore proposed for ERP. Called the hierarchical design pyramid (HDP), it encompasses recent research on the ICAM definition method (IDEF) and the object-oriented methodology (OOM) as well as an architecture for any manufacturers who seriously consider ERP implementation.     

Challenges of Enterprise Resource Planning implementation in Iran large organizations

An Enterprise Resource Planning (ERP) system is a fully integrated business management system covering functional areas of an enterprise like Logistics, Production, Finance, Accounting and Human Resources. The implementation of this system is a difficult and high cost proposition that places tremendous demands on corporate time and resources. Most of the ERP implementations have been classified as failures because they did not achieve predetermined corporate goals. The main goal of this research is determining the most important challenges of ERP implementation in Iran large organizations and our case study was the Isfahan Telecommunication. The population of this study consists of the 1500 employees of this organization from which 40 experts and employees were selected randomly and uniformly as a sample. We used questionnaire and interviews to collect data and analyzed them by SPSS using one sample t-test. The result of the study shows that the most important challenges of ERP implementation are organizational barriers, especially lack of human resources with the weighted average of 267.33. The next important issues of ERP implementation are technological factors such as unbalanced combination in team projects and then individual factors like lack of senior executives׳ involvement with the weighted average of 48.8 are the least important challenges in ERP implementation.     

应用AHP层次分析法评估ERP项目风险

风险评估是项目风险管理的基础，是确保ERP项目成功实施的关键。根据国内企业的ERP实施现状，分析了实施ERP项目存在的三大风险：软件风险、实施风险和管理风险。在此基础上引入AHP层次分析法建立ERP系统实施风险评估模型，结合山西恒康ERP实施项目，对ERP实施过程中的风险进行评估，应用AHP算法找出影响实施成功的关键风险因素。     

动态企业建模(DEM)实施中的组件化方法

以一个先进的ERP建模工具DEM为例,探讨了在动态多变的企业环境下如何快速实施具柔性与扩展性的可配置的ERP系统。提出了组件化方法,对企业进行了四个层次的划分,在业务过程层引入业务组件的概念,以支持系统的柔性与可重构信息系统的开发。提出了采用DEM实施企业建模的步骤:企业层次化、组件层次化、业务组件化、模型层次化、组件集成化。国家863/CIMS应用示范工程SH-CIMSERP的实施证明了该方法的有效性。     

Segmenting and mining the ERP users’ perceived benefits using the rough set approach

Enterprise Resource Management (ERP) systems are viewed as a promising and powerful information technology solution for dealing with the impact of competition advancements and enabling corporations to improve productivity and to operate more efficiently. Although implementations of ERP are complex and costly, corporations may actively adopt and engage in such ERP implementations if perceived benefits exceed perceived risks and costs. A number of studies have contributed to discussion of important factors related to ERP introduction or implementation. Other studies have listed various potential benefits which may be obtained when implementing ERP systems. However, few studies attempt to deepen the analyses of the ERP users’ perceived benefits in order to gain meaningful findings for promoting ERP implementations. Typically, elements of a set of ERP benefits do not necessarily share the same importance. Moreover, a given ERP benefit may be accorded a variety of very different levels of importance by different corporations. This paper attempts to segment the ERP users into two subgroups according to the notion of Herzberg’s Motivation-Hygiene theory, and further, to uncover imperative perceived benefits for distinct subgroups of ERP users employing the rough set theory. The results of this study should provide better understanding and knowledge of strategic implications for both ERP system adopters and vendors, and thus advance the scope of ERP implementations.