Enterprise Resource Planning systems ERP
Exploring ERP Adoption Cost Factors
Journal of Computer Technology & Applications 3(3) (2012), 250-261
Due to their limited resources, budgets and their high sensitivity to costs, when Small and Medium Enterprises (SMEs)... more
Due to their limited resources, budgets and their high sensitivity to costs, when Small and Medium Enterprises (SMEs) take the first step into implementing an Enterprise Resource Planning (ERP) system, they need to think about many things, foremost the cost of adoption. Literature suggests that most ERP implementations fail due to inaccurate and optimistic budget and schedule estimations,as well as, anticipating indirect costs beforehand is problematic. With the deficiency of a clear model of cost factors for ERP adoptions,ERP adoptions face high risks of failure. Failures could be caused by several factors, but the scope of this research is focused on identifying, exploring, and validating a comprehensive list of ERP adoption cost factors. This could aid SMEs in visualizing the different expected costs, and would consequently assist in better future cost management and estimations.
There has been plenty of research in ERP; however, a clear gap in ERP cost identification, management, and estimation exists. This paper focuses on identifying direct and indirect cost factors that influence total costs in the ERP adoption process. The paper presents a cost list that has been developed through literature and an ERP expert panel. Furthermore, this study validates the costs list through interviews with different stakeholders within ERP adoption projects in Egypt.
Factors affecting ERP system adoption A comparative analysis between SMEs and large companies
co-authored with G. Buonanno, P. Faverio, A. Ravarini,
D. Sciuto and M. Tagliavini
Purpose – Proposes providing an insight about enterprise resource planning (ERP) adoption,
highlighting contact... more
Purpose – Proposes providing an insight about enterprise resource planning (ERP) adoption,
highlighting contact points and significant differences between the way small to medium-sized enterprises (SMEs) and large companies approach such a task.
Design/methodology/approach – The research is based on a wide literature review, focused on the identification of a taxonomy of business and organizational factors influencing ERP adoption. The deriving research model was incorporated in a questionnaire that was preliminarily tested and finally
provided to a sample of 366 companies of any size. Responses were collected through personal interviews made by a dedicated team to a top manager.
Findings – The analysis of the empirical data shows that business complexity, as a composed factor, is a weak predictor of ERP adoption, whereas just company size turns out to be a very good one. In other words, companies seem to be disregarding ERP systems as an answer to their business complexity. Unexpectedly, SMEs disregard financial constraints as the main cause for ERP system non-adoption, suggesting structural and organizational reasons as major ones. This pattern is partially different from what was observed in large organizations where the first reason for not adopting an ERP system is organizational. Moreover, the decision process regarding the adoption of ERP systems within SMEs is still more affected by exogenous reasons or “opportunity of the moment” than business-related factors, contrary to large companies that are more interested in managing process integration and data redundancy/inconsistency through ERP implementation.
Research limitations/implications – The research model is based on the assumption that business complexity and organizational change are the most relevant variables influencing ERP adoption, and such variables are explained through a set of factors inherently limited by the results of the literature review.
Practical implications – The results of the empirical research provide indication to SMEs willing to take into consideration the adoption of an ERP system. The same outcomes could be incorporated into the development strategies of ERP software houses.
Originality/value – This paper contributes to enhancing the understanding of the factors influencing the evolution of information systems within SMEs with respect to large companies.
Changement organisationnel, implémentation des ERP et gestion du savoir: une réinterprétation économique.
Une version ultérieure a été publiée :
RUZÉ (2011), « Changement organisationnel et implémentation des TIC : pourquoi faire attention aux dimensions économiques de la gestion du savoir dans le cas des ERP ?», Vie et sciences économiques, 188, pp 38-56.
We use cognitive economics tools, never mentioned before in Information systems studies, to provide an economic... more We use cognitive economics tools, never mentioned before in Information systems studies, to provide an economic reinterpretation of case studies about coupling business process reengineering and ERP implementation. We set out its specificities and show the crucial significance of organizational uncertainty and knowledge management. We explain that economic coordination and complex reliability issues in firm strategies can be simulated by experimental economics and exhaustively explained by a simple and general economic model based on bounded rationality.
ES Implementations: A Model of Panoptical Empowerment
by Leon Teo
"Co-authored with 'Sayyen Teoh'", "published in 'Australasian Conference on Information Systems', 2010"
Enterprise Systems (ES) / Enterprise Resource Planning (ERP) systems implementations have been widely popular with... more Enterprise Systems (ES) / Enterprise Resource Planning (ERP) systems implementations have been widely popular with organisations in the past century with revenues of 37.5 billion USD in 2008 (AMR, 2009). Empowerment of users is one of commonly cited benefits of ES usage. However, literature review suggests a paradoxical situation exists with the empowerment of users via the use of IT. Various researchers have attempted to address the panoptical control and empowerment controversy by attempting to explain the impact on managers and users. However, to ensure the success of ES implementation and use, it is idealistic to achieve an optimised balance for the organization to impose control on the use of IT i.e. Enterprise Systems and the empowerment benefits of IT. This study guided by the lens of panopticon control attempts to investigate the impact of empowerment and panoptical control on varying levels of users including management and the factors that assist in optimising both control and empowerment.
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