3 ERP Implementation management Successful
TThe successful implementation of various enterprise resource planning (ERP)
systems has provoked considerable interest over the last few years. Management
has recently been enticed to look toward these new information technologies and
philosophies of manufacturing for the key to survival or competitive edges.
Although there is no shortage of glowing reports on the success of ERP
installations, many companies have tossed millions of dollars in this direction
with little to show for it. Since many of the ERP failures today can be
attributed to inadequate planning prior to installation, we choose to analyze
several critical planning issues including needs assessment and choosing a right
ERP system, matching business process with the ERP system, understanding the
organizational requirements, and economic and strategic justification. In
addition, this study also identifies new windows of opportunity as well as
challenges facing companies today as enterprise systems continue to evolve and
expand.
ERP implementation approaches
Pnterprise resource planning (ERP) systems are enterprise wide systems which,
because of their integration, automate all of a company's business processes.
They have rapidly become the de facto industry standard for replacement of
legacy systems. Because there is evidence that the overwhelming majority of ERP
implementations exceed their budget and their time allocations, researchers have
begun to analyse ERP implementation in case studies in order to provide an
implementation framework which maximises efficiencies. We argue that the concept
of an ERP implementation is not a generic concept, and we present a taxonomy of
ERP implementation categories. The evidence for the taxonomy is drawn from
previous studies and from a series of structured interviews with practitioners
who are expert in ERP implementation. We further argue that understanding the
differences between these categories is crucial if researchers are to do case
study research of ERP implementation; otherwise, comparisons are being made
between ERP implementation projects which are essentially incommensurate.
Conclusions based on incommensurate cases are inherently invalid. The taxonomy
of implementation categories is also presented as a tool for implementation
managers to delineate the scope of an ERP implementation project prior to in
depth specification of the project processes.
ERP project
An important problem in probabilistic description is to understand who are the
key players, which activities associated with
enterprise system implementations are important, and when their effect is most
prevalent across the IT development stages.
Using an information theory approach, we analyze the fit between their
importance, as noted in the current literature, and the
experiences reported by a cross-section of 116 organizations that completed an
enterprise system implementation experience.
Our results suggest that the early literature- and case-based research on
enterprise systems does not take into account the
importance of several key variables. These findings provide guidance to managers
on how best to utilize their limited resources
by employing such factors at the stage in the project’s life cycle when they
will have the greatest impact.
2003 Elsevier B.V. All rights reserved.
Keywords: Systems implementation; Enterprise resource planning; Packaged
software; Implementation of IT innovations; Critical success
factors; Change management
Successful implementation of information systems
continues to be a source of great managerial concern
and frequent frustration [71].
1. Introduction
Enterprise resource planning (ERP) systems have
been considered an important development in the corporate
use of information technology in the 1990s,
enhancing organizational cross-functional efficiency
and effectiveness through the seamless integration of
all the information flowing through a company [23].
Major business drivers behind ERP implementations
are: improving productivity, providing competitive
advantage, and satisfying customer demands. With
ERP penetration at 67%, the ERP market is the largest
segment of a company’s applications budget (34%) and
is expected to remain so through 2004 [80].
ERP systems are complex pieces of software. Consequently,
many such implementations have been difficult,
lengthy and over budget, were terminated
before completion, and failed to achieve their business
objectives even a year after implementation [64].
The significance and risks of ERP make it essential
that organizations focus on ways to improve ERP
ERP Warehouse Management Solutions: Embedded or Best-of-Breed?
As manufacturers and distributors come under rising pressure for faster
fulfillment of product
orders and outstanding customer service, they increasingly ask the question,
"Would a warehouse
management system (WMS) help us better manage and automate our warehouse and
fulfillment operations?". Often, they are finding that a WMS would, indeed,
provide the benefits they seek. Your company may be coming to the same
conclusion.
As you begin to examine the various WMS offerings, you encounter the dilemma of
whether a stand-alone WMS simply integrated with an ERP solution or a WMS module
that is part of a broader ERP suite would be your best choice. According to the
AMR Research Alert, Major ERP Vendors Eying the WMS Market, March 7, 2003, "For
ERP users, the decision to automate the warehouse will become increasingly
complex as the capabilities of the ERP WMS gradually begin to come on par with
what WMS-based vendors have to offer."
Not long ago, the embedded versus stand-alone WMS decision was made easier
because standalone systems generally provided broader WMS functionality than
what was found in ERP systems. Fortunately , this is no longer the case. Some
leading ERP vendors have closed the gap with stand-alone systems. In addition to
closing the functionality gap, these embedded WMS solutions provide benefits
beyond what stand-alone or best-of-breed (BOB) solutions can in terms
of integration, the ability to have one vendor relationship versus multiple, an
overall lower cost of ownership, and more.
Regardless of what strategy you choose to pursue - stand-alone or embedded -
your chosen solution must accomplish the goals established for it with a minimum
of disruption for implementation and integration. Achievable WMS goals often
include greater customer satisfaction through shorter cycle times and 100%
accurate deliveries, as well as better utilization of warehouse resources,
inventory reduction and increased productivity.
Selecting the right WMS solution is so important that all pertinent
considerations should be examined. This podcast can help you identify and
examine the vital points to consider as you seek
the best WMS solution to accomplish your goals and move your company into a more
competitive positionAs manufacturers and distributors come under rising pressure
for faster fulfillment of product
orders and outstanding customer service, they increasingly ask the question,
"Would a warehouse
management system (WMS) help us better manage and automate our warehouse and
fulfillment operations?". Often, they are finding that a WMS would, indeed,
provide the benefits they seek. Your company may be coming to the same
conclusion.
As you begin to examine the various WMS offerings, you encounter the dilemma of
whether a stand-alone WMS simply integrated with an ERP solution or a WMS module
that is part of a broader ERP suite would be your best choice. According to the
AMR Research Alert, Major ERP Vendors Eying the WMS Market, March 7, 2003, "For
ERP users, the decision to automate the warehouse will become increasingly
complex as the capabilities of the ERP WMS gradually begin to come on par with
what WMS-based vendors have to offer."
Not long ago, the embedded versus stand-alone WMS decision was made easier
because standalone systems generally provided broader WMS functionality than
what was found in ERP systems. Fortunately , this is no longer the case. Some
leading ERP vendors have closed the gap with stand-alone systems. In addition to
closing the functionality gap, these embedded WMS solutions provide benefits
beyond what stand-alone or best-of-breed (BOB) solutions can in terms
of integration, the ability to have one vendor relationship versus multiple, an
overall lower cost of ownership, and more.
Regardless of what strategy you choose to pursue - stand-alone or embedded -
your chosen solution must accomplish the goals established for it with a minimum
of disruption for implementation and integration. Achievable WMS goals often
include greater customer satisfaction through shorter cycle times and 100%
accurate deliveries, as well as better utilization of warehouse resources,
inventory reduction and increased productivity.
Selecting the right WMS solution is so important that all pertinent
considerations should be examined. This podcast can help you identify and
examine the vital points to consider as you seek
the best WMS solution to accomplish your goals and move your company into a more
competitive positionAs manufacturers and distributors come under rising pressure
for faster fulfillment of product
orders and outstanding customer service, they increasingly ask the question,
"Would a warehouse
management system (WMS) help us better manage and automate our warehouse and
fulfillment operations?". Often, they are finding that a WMS would, indeed,
provide the benefits they seek. Your company may be coming to the same
conclusion.
As you begin to examine the various WMS offerings, you encounter the dilemma of
whether a stand-alone WMS simply integrated with an ERP solution or a WMS module
that is part of a broader ERP suite would be your best choice. According to the
AMR Research Alert, Major ERP Vendors Eying the WMS Market, March 7, 2003, "For
ERP users, the decision to automate the warehouse will become increasingly
complex as the capabilities of the ERP WMS gradually begin to come on par with
what WMS-based vendors have to offer."
Not long ago, the embedded versus stand-alone WMS decision was made easier
because standalone systems generally provided broader WMS functionality than
what was found in ERP systems. Fortunately , this is no longer the case. Some
leading ERP vendors have closed the gap with stand-alone systems. In addition to
closing the functionality gap, these embedded WMS solutions provide benefits
beyond what stand-alone or best-of-breed (BOB) solutions can in terms
of integration, the ability to have one vendor relationship versus multiple, an
overall lower cost of ownership, and more.
Regardless of what strategy you choose to pursue - stand-alone or embedded -
your chosen solution must accomplish the goals established for it with a minimum
of disruption for implementation and integration. Achievable WMS goals often
include greater customer satisfaction through shorter cycle times and 100%
accurate deliveries, as well as better utilization of warehouse resources,
inventory reduction and increased productivity.
Selecting the right WMS solution is so important that all pertinent
considerations should be examined. This podcast can help you identify and
examine the vital points to consider as you seek
the best WMS solution to accomplish your goals and move your company into a more
competitive positionAs manufacturers and distributors come under rising pressure
for faster fulfillment of product
orders and outstanding customer service, they increasingly ask the question,
"Would a warehouse
management system (WMS) help us better manage and automate our warehouse and
fulfillment operations?". Often, they are finding that a WMS would, indeed,
provide the benefits they seek. Your company may be coming to the same
conclusion.
As you begin to examine the various WMS offerings, you encounter the dilemma of
whether a stand-alone WMS simply integrated with an ERP solution or a WMS module
that is part of a broader ERP suite would be your best choice. According to the
AMR Research Alert, Major ERP Vendors Eying the WMS Market, March 7, 2003, "For
ERP users, the decision to automate the warehouse will become increasingly
complex as the capabilities of the ERP WMS gradually begin to come on par with
what WMS-based vendors have to offer."
Not long ago, the embedded versus stand-alone WMS decision was made easier
because standalone systems generally provided broader WMS functionality than
what was found in ERP systems. Fortunately , this is no longer the case. Some
leading ERP vendors have closed the gap with stand-alone systems. In addition to
closing the functionality gap, these embedded WMS solutions provide benefits
beyond what stand-alone or best-of-breed (BOB) solutions can in terms
of integration, the ability to have one vendor relationship versus multiple, an
overall lower cost of ownership, and more.
Regardless of what strategy you choose to pursue - stand-alone or embedded -
your chosen solution must accomplish the goals established for it with a minimum
of disruption for implementation and integration. Achievable WMS goals often
include greater customer satisfaction through shorter cycle times and 100%
accurate deliveries, as well as better utilization of warehouse resources,
inventory reduction and increased productivity.
Selecting the right WMS solution is so important that all pertinent
considerations should be examined. This podcast can help you identify and
examine the vital points to consider as you seek
the best WMS solution to accomplish your goals and move your company into a more
competitive position
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