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Business Cases for Erp Implementations

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Business Cases for Erp Implementations
BUSINESS CASES FOR ERP IMPLEMENTATIONS
NORA AL-TWAIRESH, ABDULLAH S. AL-MUDIMIGH Department of Computer Sciences, College of Computer & Information Sciences King Saud University, Riyadh Department of Information Systems, College of Computer and Information Sciences King Saud University, Riyadh E-mail: twairesh@ksu.edu.sa mudimigh@ksu.edu.sa

ABSTRACT The rising expenses of information systems and their growing importance to organizations have made the justification of projects increasingly critical. The justification is usually done through a business case that is an initial step for organizations approaching an ERP implementation. The issue of developing a business case and using it during ERP implementations successfully is challenging and under-researched. This paper is a literature review on business cases in ERP, we try to identify the research issues that need to be addressed in this area and give some guidelines to developing a business case for ERP implementation. Keywords:- Business Case, ERP, Organization, integrity. As a growing number of companies adopt ERP systems, ERP systems implementation and upgrades are identified as one of the top five IT priorities among global CIOs according to independent surveys conducted by Morgan Stanley[27] and Deloitte & Touche/IDG Research Services Group[6]. A successful ERP can be the backbone of business intelligence for an organization, giving management a unified view of its processes [21]. Murphy et al. [19] argue that the escalating expense of information systems and their growing importance to organizations have made the justification of projects increasingly critical. The justification is usually done through a business case that is an initial step for organizations approaching an ERP implementation. This paper is a literature review on business cases in ERP, we try to identify the research issues that need to be addressed in this area and give some guidelines to developing a business case for ERP



References: [1] Al-Mudimigh A., Zairi. M., Jarrar Y., “Dominant Factors in ERP Software Systems Implementation: A Best Practice Perspective”, In proceedings of the Supply Chain Management and Information Systems in the Internet age, Hong Kong, pp. 1-10, 1719.January.2001. [2] Anandarajan, A., and Wen, H.J., "Evaluation of Information Technology Investment", Management Decision, vol.37 no.1, pp. 329– 337, 1999. [3] Bradely J., "Management based critical success factors in the implementation of Enterprise Resource Planning systems", International Journal of Accounting Information Systems, vol. 9, pp. 175–200, 2008. [4] Davenport T.H., "Mission Critical: Realizing the Promise of Enterprise Systems", Harvard Business School Press, Boston, MA, 2000. [5] Davenport T.H., "Putting the Enterprise Into the Enterprise System", Harvard Business Review, vol. 76, no.4,pp. 121-131, 1998. [6] Deloitte Touche and IDG Research Services Group Report, 2002. [7] Eckartz S.M., Daneva M. ,Wieringa R.J. and Hillegersberg J., " Cross-organizational ERP Management: How to Create a Successful Business Case?", In: Proceeding of the 24th Annual ACM Symposium on Applied Computing, SAC '2009, 08-12 March 2009, Honolulu, Hawaii, USA.. ACM [8] Ferrario L.I. and Montagna J.M., "A Framework for Evaluating Difficulties in ERP Implementation", In ICEIS Databases and Information Systems Integration, Porto, Portugal, 2004. [9] Finney S. and Corbett M. "ERP Implementation: a Compilation and Analysis of Critical Success Factors", Business Process Management Journal, vol. 13, no.3 , pp. 329-347, 2007. [10] Fraga E., Kaila I., "Building a Compelling Business Case for ERP projects", In 1st Annual Government to Government ERP Forum, California 2008. [11] Gattiker T. and Carter C., "Understanding project champions’ ability to gain intraorganizational commitment for environmental projects", Journal of Operations Management, vol. 28, pp. 72–85, 2010. [12] Hamerman P. D. (2008). Forecast: Global ERP Market 2008 to 2012 [Online].Available from http://www.forrester.com/rb/Research/erp_ap plications_2008_battle_goes_vertical/q/id/44 001/t/2 .Accessed December 20, 2010. [13] Hares J. and Royle D., "Measuring the Value of Information Technology", Wiley, Chichester, 1994. [14] IAS, "IAS 38 INTANGIBLE ASSETS," Deloitte, 2008, retrieved on December 20, 2010 from http://www.iasplus.com/standard/ias38.htm . [15] Kerimoğlu O. and Basoğlu N., "Optimizing the Change Management of Enterprise Resource Planning Systems Implementations", In PICMET, Istanbul, Turkey, 2006. [16] Laughlin SP., "An ERP game plan", Journal of Bus Strategy, vol.20, no.1, pp. 32–37, 1999. [17] Markus M. L. and Tanis C.," The enterprise systems experience—From adoption to success", In Framing the Domains of IT Research: Glimpsing the Future Through the Past, R.W. Zmud, Ed. Cincinnati, OH: Pinnaflex Educational Resources, 2000. [18] Melendez R., "Five Elements to Include in a Compelling Business Case", IndustryWeek,, Jan 11 2008,[online] Available: http://www.industryweek.com/articles/five_e lements_to_include_in_a_compelling_busine ss_case_15594.aspx?Page=1 accessed: 20 Dec 2010. [19] Murphy K.E. and Simon S.J., "Intangible Benefits Valuation in ERP Projects", Information Systems Journal, vol.12, no. 4, pp. 301-320, 2002. [20] Nah F.F, Lau J.L. and Kuang, J., "Critical Factors for Successful Implementation of Enterprise Systems", Business Process Management Journal, vol.7 no.3, pp285 – 296, 2001 [21] Parr A. and Shanks G.,"A model of ERP project implementation", Journal of Information Technology,vol. 15, no. 4, pp. 289–304, 2000. [22] Peppard J., Ward J. and Daniel E., "Managing the Realization of Business Benefits from IT Investments", MIS Quarterly Executive,vol. 6, no.1,pp. 1-11, 2007. [23] Poon P. and Yu Y.,"Investigating ERP systems procurement practice: Hong Kong and Australian experiences", Information and Software Technology, vol. 52, pp.1011– 1022, 2010.   47   [24] Robertson S., "Requirements and the Business Case", IEEE Software, pp. 93-95, September/October 2004. [25] Ross J., "Surprising Facts about Implementing ERP", IT PRO IEEE, pp. 65-68, 1999. [26] Ross J.W. and Beath C.M., "Beyond the Business Case: New Approaches to IT Investment", MIT Sloan Management review, vol. 43, no.2, pp. 51-59, 2002. [27] Togut D.M. and Bloomberg E., Morgan Stanley CIO Survey Series: Release 4.5. Morgan Stanley Research Report, 2003 [28] Wallace T. and Kremzar M. "ERP: Making it Happen", John Wiley and Sons, New York, 2001. [29] Ward J., Daniel E. and Peppard J. "Building Better Business Cases for IT Investments", MIS Quarterly Executive, vol.7, no.1,pp. 115, 2008.   48   AUTHOR PROFILES: Nora Al-Twairesh received her B.S. and M.S degree in Computer Science from King Saud University, Riyadh Saudi Arabia, in 2005. From 2005–2010, She was a Lecturer at the Information Technology Department, College of Computer and Information Sciences, King Saud University in Saudi Arabia. Now she is a PhD student at Computer Science Department in the same university. Her interests involve IT business value, Web engineering, Wireless Sensor Networks andAd Hoc Networks. Abdullah Al-Mudimigh is associate professor & senior IT consultant at college of computer and information sciences, King Saud University in Saudi Arabia. Currently he is a general manager of ERP project (MADAR) at King Saud University. Dr. Al-Mudimigh has many years of experiences working in IT. He also IT consultant to many government departments and firms. He is a member of many committees at many organizations, in Saudi Arabia and globally. He has been published at internationality recognized refereed journals and conferences. He also acted as a reviewer for many journals and conferences. His current research interests focus on the areas of IT business value, organizational and strategic impacts on IT, Electronic business, Customer Relationship Management (CRM), Supply Chain Management (SCM), and Knowledge Management (KM).   49

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