Algorithm of Choosing the Enterprise Resource Planning System for Enterprises

Algorithm of Choosing the Enterprise Resource Planning System for Enterprises

Alexander Novikov, Marina V. Sazonova
Copyright: © 2020 |Pages: 15
DOI: 10.4018/IJEIS.2020100107
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Abstract

The article is dedicated to pointing out the main principles of choosing modern enterprise resource planning (ERP) system for highly technological domestic enterprises. The article provides criteria for choosing ERP system and the risk group for their implementation. The close dependence of the success of the implementation of ERP systems on the proportion of projects for which the budget has not been exceeded has been revealed; the share of projects for which the excess of the actual period over the planned period of the project occurred and the share of implementation of solutions of the “box” type. The authors conclude that it is necessary to develop an information system that meets the specifics of a particular enterprise, as well as careful planning for the timing and cost of implementing this system.
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Introduction

Breakthrough technologies, providing the change of waves or technological modes, create new possibilities for development of industrial production as basis of qualitative economic growth and for formation of new industrial spheres and economic sectors. Thus, there is updating of not only production technologies, but also principles and systems of industrial enterprises management, which take into consideration not only technological shifts, but also requirements of outer environment and changes of its qualitative, institutional and infrastructural structure. Digital transformation comes as business transforming (forming of principally new business-models and business-processes, creation of innovative products and services) on the basis of advanced technologies complex, such as clouds, mobility, advanced analytics, social interaction, and IoT. In terms of digital transformation of production, people, machines, products, and systems, using information and communication technologies and Internet unite in dynamic self-organizing network structure of real time. In the result, all chain’s stages of creation value added become transparent with continuous information links. There is reached an increasing of flexibility up to the production of batch, consisting of one product with economic and technological effectiveness of mass production (Chofreh, Goni & Klemeš, 2018).

Digital transformation allows not only significantly increase productivity, quality, and effectiveness of resources’ usage level, but also form new business-models on the basis of new information flows. For the next five years such transformation on the global level estimated will bring 30 billion euros of value added, using new digital products and services and additional 40 billion euros of annual investments in industry. 80% of the companies will have digital flows of value creation, which will lead to 18% increasing of the level of effectiveness and productivity. According to the recent research of analytical company KPMG, 93% of American multinational corporations nowadays either initiate the transformation process, or have already finished it, and the volume of investments is situated in the range of 100 million dollars. In terms of digitalization there is a special row of controversial requirements is given to production. On the one hand, many leading experts talk about low costs and high variability, on the other hand, they point out that the life cycle of the product shortens.

Digital economics represents infrastructural add-on above material sector of economy, which has to increase the effectiveness of cooperation of the production process participants and realization of industrial production, and cooperation of individuals in the process of economic activity. The level of digital economy development directly correlates with the level of material sphere development: only where the high-tech segment in industrial complex is formed, development of digital segment is more appropriate. However, we can say that the opposite is right too: the more production processes are digitalized and virtualized, the more active the push to development is given to analogue types of services and production. Digital transformation of such multi-structural system with significant amount of vertical and horizontal connections, such as Russian industrial complex, is a rather long-lasting process, which includes some consistent stages. It is rather important to systematize the stages, justify their qualitative and quantitative characteristics, and find out patterns and terms of transition between them. The definitions of digital process transformation stages of real sector will allow not only estimate the modern stage, but also predict the perspectives of industrial digitalization (Dmitriev & Novikov, 2019).

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