Preview

Controlling the ERP Implementation Risks

Powerful Essays
Open Document
Open Document
6635 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Controlling the ERP Implementation Risks
ARTICLE IN PRESS
Information Systems 35 (2010) 204–214

Contents lists available at ScienceDirect

Information Systems

www.management.blogfa.com

A practical model on controlling the ERP implementation risks
Amin Hakim a,Ã, Hamid Hakim b a b

Ph.D. Candidate on Systems Management, University of Tehran, Iran IH University, Center of NSDS, Tehran, Iran

a r t i c l e i n f o
Article history: Received 23 June 2009 Received in revised form 28 June 2009 Accepted 29 June 2009 Recommended by: D. Shasha Keywords: ERP Decision-making model Risk management ERP selection model

abstract
Although ERP systems were already introduced many years back and were implemented in different organizations, there are still companies who hesitate to decide about establishing ERP systems in their structure. This hesitation will itself result in the projects to go in vain. On the other hand, taking into account the Iranian organizations, the unfamiliarity with these systems is obviously comprehended, something that stems from the lack of information in decision-makers and managers concerning the abovementioned issue, together with the feeling of fear and inconvenience with this novel technology. Taking into account the lack of successful prior experience of ERP implementation in Iranian automotive industry, these failures have acted as obstacles for the decisionmakers to move towards establishment of the system. Bearing in mind all the above, this article, through reviewing the intra- and extraorganizational limitations, has tried to provide a suitable and practical model for decision-makers to take precise steps in implementing ERP systems in Iran. This model has been operationally tested and simulated in Bahman motor company. The overall schema of the model and also the evaluation results in the aforementioned company have been incorporated in the results of this essay with the intention to decrease the decision-making risks and, therefore, success of these types of



References: [1] G. Stewart, M. Milford, T. Hunter, Organization readiness for ERP implementation, Proceedings of the Americas Conference on Information System (2000) 966–971. [2] David L. Olson, Managerial Issues of ERP Systems, The McGraw-Hill Companies, New York, 2003. [3] M.L. Markus, S. Axline, D. Petrie, C. Tanis, Learning from adopters’ experiences with ERP: problems encountered and success achieved, Journal of Information Technology 15 (2000) 245–265. [4] K.C. Laudon, J.P. Laudon, Management Information Systems – New Approaches to Organization and Technology, fifth ed., Prentice-Hall, London, 1998. ¨ [5] P. Jarvinen, On Research Methods, University of Tampere, Tampere, 1999, 127 pp. [6] R.D. Galliers, Choosing information systems research approach, in: Information Systems Research, Alfred Waller Ltd., 1992, pp. 144–162. [7] H. Klein, M.D. Myers, A set of principles for conducting and evaluating interpretive field studies in Information Systems, MIS Quarterly 23 (1) (1999) 67–93. [8] J. Motwani, D. Mirchandani, M. Madan, A. Gunasekaran, Successful implementation of ERP projects: evidence from two case studies, International Journal of Production Economics 75 (2002) 83–96. [9] A.T. Chatfield, N. Bjørn-Andersen, The impact of IOS-enabled business process change on business outcomes: transformation of the value chain of Japan airlines, Journal of Management Information Systems 14 (1) (1997). [10] M. Markus, C. Tanis, P. Fenema, Multisite ERP implementation, Communication of the ACM 43 (4) (2000) 42–46. [11] R. Kalakota, M. Robinson, e-Business 2.0, Addison-Wesley, Reading, MA, 2001. [12] P. Bingi, M.K. Sharma, J.K. Godla, Critical issues affecting an ERP implementation, Information Systems Management Summer 16 (3) (1999) 7–14. [13] C.P. Holland, B. Light, A critical success model for ERP implementation, IEEE Software 16 (3) (1999) 30–35.

You May Also Find These Documents Helpful

  • Powerful Essays

    As a result of technological advancements, modern businesses seek new and improved methods of conducting their business processes. Systems have been designed to augment and manage core business functions such as production, accounting, procurement, and human resources. However, even with these systems in place, information is unreliable and inconsistent if they are on disparate platforms. Enterprise Resource Planning (ERP) software tackles this problem by integrating business processes into a centralized system. This paper assesses the stages involved in transitioning form legacy systems to an ERP system. It highlights ERP benefits to businesses, as well as the success and challenges associated with its implementation.…

    • 3696 Words
    • 15 Pages
    Powerful Essays
  • Powerful Essays

    References: 1. Al-Mashari M and Al-Mudimigh A, (2003) "ERP implementation: lessons from a case study…

    • 5951 Words
    • 24 Pages
    Powerful Essays
  • Better Essays

    Risky Situations

    • 2619 Words
    • 11 Pages

    Grabski , S. V., Leech, S. A., & Lu, B. (n.d.). Risks and controls in the implementation of erp systems. The International Journal of Digital Accounting Research, 1(1), 47-68. Retrieved from http://www.uhu.es/ijdar/10.4192/1577-8517-v1_3.pdf…

    • 2619 Words
    • 11 Pages
    Better Essays
  • Better Essays

    Pak Eektron Limited CASE

    • 3377 Words
    • 10 Pages

    [3] Umble, Elisabeth J., Ronald R. Haft, and M. Michael Umble. ""Enterprise resource planning: Implementation procedures and critical success factors."." European journal of operational research 146, no. 2 (2003): 241-257.…

    • 3377 Words
    • 10 Pages
    Better Essays
  • Better Essays

    Powerit Case Study

    • 1011 Words
    • 5 Pages

    An example of a company that failed with their ERP system is PowerIT Ltd., an autonomous company of about 200 employees whose job is to produce and repair power conversion supplies. The mid-size company decided to replace their existing materials resource planning(MRPII) legacy system with an enterprise resource planning(ERP) system to “modernize practices and provide an integrated software solution” to match the growth of their customer base.…

    • 1011 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    SMEs and large companies", Journal of Enterprise Information Management, Vol. 18 Iss 4 pp. 384-426…

    • 9487 Words
    • 54 Pages
    Powerful Essays
  • Better Essays

    ERP implementation

    • 1476 Words
    • 5 Pages

    In order to achieve maximum efficiency the risk associated with any task must be minimized. Many engineering, medical firm install different types of tools to overcome the risk factor. This is done through the identification of inherent, control and detection of risk followed by the establishment of an acceptable specified level of overall risk that is function of other risks 1. The same reason can be thought upon for the implementation of an ERP system. In order to have successful implementation of the ERP the firms need identify the risk associated with every task and apply appropriate controls put in place to minimize the risks.…

    • 1476 Words
    • 5 Pages
    Better Essays
  • Powerful Essays

    References: Ahituv, Niv; Neumann, Seev; Zviran, Moshe (2002). “A system development methodology for ERP systems,” Journal of Computer Information Systems, 42(3): 56-67. Barki, Henri; Pinsonneault, Alain (2005). “A model of organizational integration, implementation effort, and performance,” Organization Science, 16(2): 165-179. Bernroider, Edward and Koch, Stefan (2001). “ERP selection process in midsize and large organizations,” Business Process Management Journal, 7(3): 251-257. Bingi, Prasad.; Sharma, Maneesh.; Godla, Jayanth K. (1999). “Critical issues affecting an ERP implementation,” Information Systems Management, 16(3): 7-14. Bozeman, Barry and Bretschneider, Stuart (1986). “Public management information systems: Theory and prescriptions,” Public Administration Review, 46(6): 475-487. Bozeman, Barry 1987. “All Organizations are Public: Bridging Public and Private Organizational Theories”, Jossey-Bass, San Francisco. Cohen, Wesley M. and Levinthal, Daniel A. (1990). “Absorptive capacity: A new perspective on learning and innovation,” Administrative Science Quarterly, 35: 128-152. Daft, Richard L. (1978). “A dual-core model of organizational innovation,” Academy of Management Journal, 21(2): 193-210.…

    • 4850 Words
    • 20 Pages
    Powerful Essays
  • Powerful Essays

    a short essay about ERP

    • 813 Words
    • 4 Pages

    ERP is short for enterprise resource planning which is designed to improve both external customer relationship s and internal collaborations by automating tasks and activities that streamline work process, shorten business process cycles, and increase user productivity. ERP software integrated all facets of an operation, including product planning, development, manufacturing processes, sales and marketing. In this short essay, three ERP application softwares from Oracle, Epicor and Netsuite were compared separately in the form of diagram:…

    • 813 Words
    • 4 Pages
    Powerful Essays
  • Powerful Essays

    ERP implementation poses major challenges to organizations, as many of them fail in their early stages or substantially exceed the project cost [1]. ERP systems differ qualitatively from prior large scale Information Technology (IT) implementations in three ways [2]: 1) ERP impacts the whole organization, 2) employees may be learning new business processes in addition to new software, and 3) ERP is often a business led initiative, rather than IT led. ERP is an integrated set of subsystems that integrates all facets of the business, including planning, manufacturing, logistics, sales and marketing. ERP systems originated to serve the information needs of manufacturing companies. Over time though, they have grown to serve other industries, including financial services, consumer goods sector, supply chain management and the human resources sector. These systems provide integration and optimization of various business processes and this was what the companies…

    • 8106 Words
    • 33 Pages
    Powerful Essays
  • Better Essays

    PEL CASE ASSIGNMENT

    • 3377 Words
    • 10 Pages

    [3] Umble, Elisabeth J., Ronald R. Haft, and M. Michael Umble. ""Enterprise resource planning: Implementation procedures and critical success factors."." European journal of operational research 146, no. 2 (2003): 241-257.…

    • 3377 Words
    • 10 Pages
    Better Essays
  • Good Essays

    I would like to thank Herb Tuttle, my EMGT program advisor and the chairperson of the…

    • 13347 Words
    • 63 Pages
    Good Essays
  • Powerful Essays

    Sme Analysis

    • 1366 Words
    • 6 Pages

    ERP systems (a very popular form of enterprise-wide IT solution) are designed to achieve integration and streamlining of internal processes by providing a suite of software modules that cover all the functional areas of a business. However, increasingly we hear of the failure of ERP implementations (Davenport, 1998). The authors have studied MSME organizations in the manufacturing sector and have reported failure at ERP implementation. As a result, there has been expanded research focusing on the implementation process.…

    • 1366 Words
    • 6 Pages
    Powerful Essays
  • Powerful Essays

    Sap Hcm

    • 6823 Words
    • 28 Pages

    The use of enterprise resource planning (ERP) software has become increasingly more common in a lot of today’s businesses. It is adopted in many firms in attempts of improving business performance. The concept of business performance can be operationalised as financial gains by the organization, operational improvements for the organization or intangible gains for the organization.…

    • 6823 Words
    • 28 Pages
    Powerful Essays
  • Best Essays

    Naeemarshad1969

    • 2932 Words
    • 12 Pages

    References: Akkerman, H., and von Helden K. “Vicious and Virtuous Cycles in ERP Implementation: A Case Study of Interrelations between Critical Success Factors,” European Journal of Information Systems (11), 2002, pp. 35-46.…

    • 2932 Words
    • 12 Pages
    Best Essays