Enterprise Resource Planning System: Issues and Implementation

Enterprise Resource Planning System: Issues and Implementation

Edward T. Chen (University of Massachusetts Lowell, USA)
Copyright: © 2009 |Pages: 13
DOI: 10.4018/978-1-60566-222-0.ch005
OnDemand PDF Download:


Enterprise Resource Planning (ERP) is the method of trying to unify all processes within an organization into one software system or database. Enterprise Resource Planning Projects should not be entered into lightly. Not only are ERP projects a new software program to learn, but they are a new way of thinking. This chapter provides a brief history of ERP; follows by the advantages and disadvantages of ERP for organizations considering the adoption of ERP. The next section introduces various strategies of ERP implementation with a list of ERP software vendors. ERP is a long-term IT investment. The total cost of ownership is analyzed and discussed with several cases of ERP implementation.
Chapter Preview

History Of Erp

ERPs came about as a way to reduce costs within organizations in the early 1990s. Called organization “re-engineering” or “business process redesign”, ERPs helped to streamline processes (Davenport, 1993; Davenport, 1998; Hammer and Champy, 1993; Hammer, 1997). The IT staff would no longer need several application specialists on staff to support the multiple software programs running. Organizations would no longer need as many administrative personnel in each department since there would be one common database shared by multiple departments.

When ERP Systems were first developed, IT professionals were anticipating a “one-size fits all” software development that could capture the functions of all departments across the board (White, 2002). The first versions of ERP in the early 1990s tied together logistics and production. By 1995, software vendors were hearing requests from organizations to have a marketing and sales solution added to the ERP platform. For those customers that already owned ERPs, vendors offered add-on application solutions. For new customers, vendors created total solutions that tied Logistics, Production, Marketing and Sales all into one program. Vendors focused their newer versions on the recommendations of their users. Once organizations implemented ERP software, the vendors were able to take advantage of the “relationship” by imposing mandatory upgrades every twelve to eighteen months. Organizations had no other choice but to comply since it is not economically viable to discontinue use of an existing ERP or switch to a new vendor.

By the time 1999-2000 rolled around, ERP vendors saw a slow down in sales of ERP solutions. This was due, in a large part, to the Y2K scare. Those organizations that were interested in ERP solutions either hurried up to implement prior to 2000 or waited to ensure that the ERP vendors had successfully solved the Y2K problem within their programs. Several organizations also took the money that would have been used for ERP implementation and used it to ensure that their existing systems would survive the stroke of midnight January 1, 2000 and thus their respective ERP projects were delayed a year.

In the early to mid 2000s there has been a decline in sales of ERP solutions as a result of a “saturation” of the market. Due to the cost and complexity of ERP systems, historically only large organizations have been able to afford a total ERP package. The larger organizations also have the personnel resources to devote to the ERP project. In order to combat the declining sales, vendors are now designing ERP solutions catered to small to medium sized organizations with scaled down versions of the total ERP package that is designed for the large organizations. These scaled down versions of the ERP solutions would require less IT support and thus fewer personnel (Koh and Simpson, 2007).

Complete Chapter List

Search this Book:
Patricia Ordóñez de Pablos
Table of Contents
Chapter 1
Patricia Ordóñez de Pablos, Miltiadis D. Lytras
The chapter addresses the importance of knowledge-based resources proposing indicators to measure and report technological capital in companies. The... Sample PDF
Measuring and Reporting Technological Capital in Companies
Chapter 2
Pankaj, Micki Hyde, Arkalgud Ramaprasad, Suresh K. Tadisina
There is no systematic study of Information Systems (IS) agility in academic and practitioner IS literature and the concept is not well defined. For... Sample PDF
Revisiting Agility to Conceptualize Information Systems Agility
Chapter 3
Vagan Terziyan, Artem Katasonov
Industry pushes a new type of Internet characterized as the Internet of Things, which represents a fusion of the physical and digital worlds. The... Sample PDF
Global Understanding Environment: Applying Semantic and Agent Technologies to Industrial Automation
Chapter 4
Jeffrey Hsu
The market for e-commerce to Chinese audiences is one which has tremendous potential, given the fact that the number of potential users and... Sample PDF
Targeting E-Commerce to Chinese Audiences and Markets: Managing Cultural and Regional Challenges
Chapter 5
Edward T. Chen
Enterprise Resource Planning (ERP) is the method of trying to unify all processes within an organization into one software system or database.... Sample PDF
Enterprise Resource Planning System: Issues and Implementation
Chapter 6
Sandip Vijay, S. C. Sharma
This chapter reviews the secure characteristics of mobile devices that can use wireless networks (adhoc) almost any where and any time, by using one... Sample PDF
A Secure Characteristics of Wireless Ad-Hoc Networks
Chapter 7
Jorge Marx Gómez, Thanh Tran
Approaches to adaptation have been proposed by many different research communities, Hypermedia System and Intelligent Tutoring in particular. The... Sample PDF
A Survey on Approaches to Adaptation on the Web
Chapter 8
Jorge Marx Gómez, Tran Duc
A portal is a Web-based single point of access that delivers information and applications to a user on its own and by the integration of external... Sample PDF
A Personalized Portal on the Basis of Semantic Models and Rules
Chapter 9
Sylvie Laforet, Hannah Limahelu
This wireless advertising is considered to be an important alternative advertising medium in the future, due to its numerous advantages over... Sample PDF
British Consumers' Attitudes and Acceptance of Mobile Advertising
Chapter 10
Javier de Andrés, Pedro Lorca, Jose Emilio Labra
This chapter aims to determine the factors influencing the decision of implementing an ERP system in a country where technology awareness and the... Sample PDF
Determinants of ERP Implementations: An Empirical Study in Spanish Companies
Chapter 11
Jaakko Ikävalko, Hänninen, Seppo J., Ari Serkkola, Ilkka Kauranen
Technology programs are a means to facilitate the development and commercialization process of new innovative technologies. They are forums for the... Sample PDF
Emerging Topics and Technologies in Information Systems
Chapter 12
Cliona McParland, Regina Connolly
While Internet-based technologies have the potential to empower users immensely, individuals are becoming increasingly aware of the ways in which... Sample PDF
Technology-Related Privacy Concerns: An Emerging Challenge
Chapter 13
Giovanni Vincenti
Fear of flying is a common problem that many people have to face. As varied as the causes may be, all kinds of fears have many aspects in common.... Sample PDF
Fear of Flying and Virtual Environments: An Introductory Review
Chapter 14
Thomas Hädrich, Torsten Priebe
Knowledge work can be characterized by a high degree of variety and exceptions, strong communication needs, weakly structured processes, networks... Sample PDF
A Context-Based Approach for Supporting Knowledge Work with Semantic Portals
Chapter 15
Le Duy Ngan, Angela Goh
Web services form the core of e-business and hence, have experienced a rapid development in the past few years. This has led to a demand for a... Sample PDF
Survey of Web Service Discovery Systems
Chapter 16
Antonio Picariello, Antonio M. Rinaldi
The user dimension is a crucial component in the information retrieval process and for this reason it must be taken into account in planning and... Sample PDF
User Relevance Feedback in Semantic Information Retrieval
Chapter 17
Abdul-Rahman Al-Ali, Tarik Ozkul, Taha Landolsi
This paper presents the results of a study toward generating a wireless environment to provide real-time mobile accessibility to patient information... Sample PDF
A Preliminary Study toward Wireless Integration of Patient Information System
About the Contributors