Enterprise Resource Systems Software Implementation

Enterprise Resource Systems Software Implementation

Ganesh Vaidyanathan (Indiana University, USA)
Copyright: © 2009 |Pages: 17
DOI: 10.4018/978-1-59904-859-8.ch018
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Abstract

Enterprise resource planning systems are complex yet single, integrated software programs that runs off a single database so that the various departments can easily share information and communicate with each other. The integrated approach can have a tremendous payback if companies implement the software correctly. This chapter illustrates the implementation steps as followed by major corporations in the United States, and provide an insight into the practical implementation issues. A business case for such systems is introduced in this chapter as well. The chapter provides seven ERP issues and elaborates these issues in the context of implementation. The implementation details during conceptualization, design, implementation, go-live, and operation stages are provided with a note to practitioners on ERP implementation.
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Introduction

Enterprise resource planning (ERP) software attempts to integrate all departments and functions across a company onto a single computer system that can serve all those different departments’ particular needs (Koch 2002). Each of those departments typically has its own computer system optimized for the particular way that the department does its work. But ERP combines them all together into a single, integrated software program that runs off a single database so that the various departments can more easily share information and communicate with each other. That integrated approach can have a tremendous payback if companies install the software correctly.

Typically, when a customer places an order, that order begins a mostly paper-based journey from in-basket to in-basket around the company, often being keyed and re-keyed into different departments’ computer systems along the way. These activities cause delays and errors. Meanwhile, no one in the company truly knows what the status of the order is at any given point because there is no way for the finance department, for example, to get into the warehouse’s computer system to see whether the item has been shipped. ERP can replace the old standalone computer systems in accounting, human resources, manufacturing, and warehouse with single unified software. This results in integrated software that is linked together so that someone in finance can look into the warehouse module to see if an order has been shipped. Most vendors’ ERP software is flexible enough to install certain modules without buying the whole package.

Enterprise systems that encompass all departmental processes can often be complex and interdependent. Highly interdependent technology solutions such as ERP are used by firms to enhance the efficiency and ease of in-house capabilities. The use of ERP is characterized by high levels of task interdependence (Sharma and Yetton 2003). To implement such highly complex and interdependent systems is often a daunting process. Implementing an enterprise-wide application like an ERP system to help run a business is a costly and complex process and is like implementing a civil engineering endeavor or sizable construction project (Hawksworth 2007). A certain amount of planning, discipline and wisdom are required to complete implementation on schedule to meet the requirements of a firm.

Many of the current ERP literature share implementation experiences from various companies. While some of them attempt to explain why the ERP implementation is difficult and what needs to be done to achieve desirable results, others present various models of implementation stages and different implementation methodologies (Moon, 2007). The contributions of this chapter to researchers and practitioners include:

  • a.

    Illustration of the implementation steps as followed by major corporations in the United States, and

  • b.

    Provision of an insight into the practical implementation issues, and

  • c.

    Introduction to a business case for ERP systems.

This chapter details the implementation issues of ERP systems and provides an insight into the practical aspects of such implementation. The next section provides seven ERP issues and elaborates these issues in the context of implementation. The following section describes ERP software and the ERP implementation scheme during conceptualization, design, implementation, go-live, and operation stages of implementation. The chapter concludes with a note to practitioners on ERP implementation.

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What Can Erp Do?

ERP is an enterprise software package. With ERP, it is possible to keep track any transaction in an enterprise in real-time. ERP allows managers to process business information more effectively to support sound decision making. ERP solutions cover all of the core operations necessary to run successful small and midsize businesses, including accounting and banking, customer and vendor management, purchasing and sales, logistics and production, as well as reporting and analysis.

Key Terms in this Chapter

Integration: ERP software integration is the process of integrating ERP systems with other enterprise information resources or systems within an enterprise.

Management Commitment: Management commitment is direct participation by the highest level executives in a specific and critically important aspect or program of an organization.

Implementation: Implementation consists of defining a project, putting together project teams, reengineering of existing business processes, customizing the software to reflect new business processes, testing the software in organizational environment such that the software is usable for the organizational users.

Enterprise Systems: Enterprise systems are software that provides solutions to an integrated business organization.

Customization: Customization refers to modifications to the original software that is typically not supported by the software vendor and those needed by the customer because of their unique business processes.

Enterprise Resource Planning (ERP): Software systems for business management that integrates functional areas such as planning, manufacturing, sales, marketing, distribution, accounting, finances, human resource management, project management, inventory management, service and maintenance, transportation, and e-business.

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Editorial Advisory Board
Table of Contents
Preface
Jatinder N. D. Gupta, Sushil Sharma, Mohammad A. Rashid
Acknowledgment
Jatinder N. D. Gupta, Sushil Sharma, Mohammad A. Rashid
Chapter 1
Nancy Alexopoulou, Panagiotis Kanellis, Mara Nikolaidou, Drakoulis Martakos
Efficient response to change, both upon expected and unpredicted contingencies, is a critical characteristic for modern enterprises. This chapter... Sample PDF
A Holistic Approach for Enterprise Agility
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Chapter 2
Hossana H. Aberra
SAP Business Blueprint is a vital part of SAP implementation exercise. A well-defined business blueprint may set the foundation for successful... Sample PDF
What is SAP Business Blueprint?
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Chapter 3
Rogerio Atem de Carvalho
This chapter introduces the key aspects of Free/Open Source Enterprise Resources Planning systems (FOS-ERP). Starting by related work carried out by... Sample PDF
Free and Open Source Enterprise Resources Planning
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Chapter 4
Brian H. Cameron
Business process modeling (BPM) is a topic that is generating much interest in the information technology (IT) industry today. Business analysts... Sample PDF
The Changing Nature of Business Process Modeling: Implications for Enterprise Systems Integration
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Chapter 5
Alok Mishra
In the age of globalization, organizations all over the world are giving more significance to strategy and planning to get an edge in the... Sample PDF
Enterprise Resource Planning Systems: Effects and Strategic Perspectives in Organizations
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Chapter 6
Gary P. Moynihan
An executive information system (EIS) is a software system designed to support the informational needs of senior management. The EIS is... Sample PDF
An Overview of Executive Information Systems
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Chapter 7
Joseph Bradley
Enterprise Resource Planning systems have proven difficult and costly to implement. Organizations must consider the risks and rewards of embarking... Sample PDF
Enterprise Resource Planning System Risks and Rewards
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Chapter 8
Andrea Masini
After observing that the pervasiveness of IT may soon render it strategically irrelevant, management scholars have recently questioned the value of... Sample PDF
ERP-Driven Performance Changes and Process Isomorphism
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Chapter 9
Ronda R. Henning
The application software life cycle considers the functionality of a given collection of components within the context of a consumer’s requirements... Sample PDF
Application Integration within the Enterprise Context
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Chapter 10
Sanjay Mathrani, Mohammad A. Rashid, Dennis Viehland
A significant investment in resources is required for implementation of integrated enterprise systems as technology solutions while the... Sample PDF
The Impact of Enterprise Systems on Business Value
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Chapter 11
Charlotte H. Mason, Aleda V. Roth
Growing competitive pressures and escalating customer demands have led businesses to sophisticated information technology to manage costs and... Sample PDF
The Right Path to SCM-CRM Integration
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Chapter 12
Euripidis Loukis, Ioakim Sapounas, Konstantinos Aivalis
This chapter is dealing with the alignment of enterprise systems with business strategy and its impact on the business value that enterprise systems... Sample PDF
Enterprise Systems Strategic Alignment and Business Value
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Chapter 13
Sanjay Mathrani, Mohammad A. Rashid, Dennis Viehland
The market for enterprise systems (ES), continues to grow in the post millennium era as businesses become increasingly global, highly competitive... Sample PDF
Enterprise Systems in Small and Medium-Sized Enterprises
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Chapter 14
Kerstin Fink, Christian Ploder
Small and medium-sized enterprises (SMEs) are a vital and growing part of any national economy. Like most large businesses, SMEs have recognized the... Sample PDF
Integration Concept for Knowledge Processes, Methods, and Software for SMEs
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Chapter 15
Tobias Schoenherr, Ditmar Hilpert, Ashok K. Soni, M.A. Venkataramanan, Vincent A. Mabert
Although the research on integrated enterprise systems (ES) is proliferating, the knowledge base about ES implementations, usage and experiences... Sample PDF
Enterprise System in the German Manufacturing Mittelstand
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Chapter 16
Darshana Sedera
Organizations invest substantial resources in acquiring Enterprise Systems, presumably expecting positive impacts to the organization and its... Sample PDF
Size Matters! Enterprise System Success in Medium and Large Organizations
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Chapter 17
Joseph Bradley
ERP implementation projects normally involve a single vendor providing the packaged software for the entire system. Although most companies follow... Sample PDF
Implementing Best of Breed ERP Systems
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Chapter 18
Ganesh Vaidyanathan
Enterprise resource planning systems are complex yet single, integrated software programs that runs off a single database so that the various... Sample PDF
Enterprise Resource Systems Software Implementation
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Chapter 19
Calin Gurau
This chapter considers the importance of business modelling for implementing e-CRM systems. The introduction of e-business models requires the... Sample PDF
Restructuring the Marketing Information System for eCRM: An Application of the Eriksson-Penker Method
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Chapter 20
Albert Boonstra
At the present moment, many hospitals are going through a process of change directed at the integrated delivery of health care. Enterprise Systems... Sample PDF
Analyzing an ES Implementation in a Health Care Environment
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Chapter 21
S. Padmanaban
ERP systems have become key enablers of businesses today. While many organizations wish to adopt ERP for competitive advantage, they find choosing... Sample PDF
Designing to Deploying Customisable ERP Cost Effectively
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Chapter 22
Mateja Podlogar, Katalin Ternai
This chapter introduces the ERP systems, their complexity, and especially their integration in higher education as a significant challenge for many... Sample PDF
ERP Systems in Higher Education from Regional Perspective
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Chapter 23
Valentin Nicolescu, Holger Wittges, Helmut Krcmar
This chapter provides an overview of past and present development in technical platforms of ERP systems and its use in enterprises. Taking into... Sample PDF
From ERP to Enterprise Service-Oriented Architecture
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Chapter 24
ERP and Beyond  (pages 329-345)
Suresh Subramoniam, Mohamed Tounsi, Shehzad Khalid Ghani, K. V. Krishnankutty
Enterprise-wide automation has already transformed the relations among suppliers, purchasers, producers, and customers. Conventional ERP helps only... Sample PDF
ERP and Beyond
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Chapter 25
Gita A. Kumta
The chapter introduces the essence of ERP in government as a tool for integration of government functions which provides the basis for citizen... Sample PDF
E-Government and ERP: Challenges and Strategies
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Chapter 26
Manish Gupta, Raj Sharman
A paradigm shift is occurring in identity management philosophy. User-focused identity management is one the emerging and most promising paradigms.... Sample PDF
Emerging Frameworks in User-Focused Identity Management
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Chapter 27
Ramón Brena, Gabriel Valerio, Jose-Luis Aguirre
From the Knowledge Management perspective, Knowledge distribution is a critical process in organizations. As many of the other Knowledge-related... Sample PDF
Next-Generation IT for Knowledge Distribution in Enterprises
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